BIDDING DOCUMENT

for

THE PROCUREMENT OF

Construction of Ganesh Mavi Building at

ward no- 2
National Competitive Bidding (NCB)

Budhanilkantha Municipality Office

Issued on:
Issued to:
Invitation for Bids No.:
NCB No.: NCB/BNP/CW/080_081/32
Contract Identification No:
NCB/BNP/CW/080_081/32
Abbreviations

BD ... ............................................................ Bidding Document

BDF ......................................................... .. Bidding Forms
BDS ......................................................... .. Bid Data Sheet
BOQ ... ....................................................... Bill of Quantities
COF .......................................................... Contract Forms
DP ... .......................................................... Development Partners
DoLI... .........................................................Department of Local Infrastructure
ELI ... ..................................................... ... Eligibility
EEC... ....................................................... .. Evaluation and Eligibility Criteria
GCC ... ..................................................... .. General Conditions of Contract
GoN1 ... .................................................... .. Government of Nepal
ICC ... .......................................................... International Chamber of Commerce
IFB ……………………………………. Invitation for Bids
ITB ... .......................................................... Instructions to Bidders
JV ... ........................................................ .. Joint Venture
NCB ... ....................................................... National Competitive Bidding
PAN ... .................................................... .. Permanent Account Number
PPA ... ..................................................... .. Public Procurement Act
PPMO ... .................................................... Public Procurement Monitoring Office
PPR ... ..................................................... .. Public Procurement Regulations
SBD ......................................................... .. Standard Bidding Document
SCC ... ..................................................... .. Special Conditions of Contract
TS ... ............................................................. Technical Specifications
VAT ... .................................................... .. Value Added Tax
WRQ ... .................................................. ... Works Requirements

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“GoN” word indicates all public entities according to Public Procurement Act, 2063
Table of Contents

Invitation for Bids ...............................................................................................................1

Part - I Bidding Procedures

Section - I Instructions to Bidders ... …………………………………………………………..4

Section - II Bid Data Sheet………………………………………...………………………….22
Section - III Evaluation and Eligibility Criteria………………………..…….………………..26
Section – IV Bidding Forms……………………………………………………..…………....28

Part - II Employer's Requirements ............................................................................39

Section - V Works Requirements ……………………………………………………….…..41

Section - VI Bill of Quantities………………………………………………………….…….46

Part - III Conditions of Contract and Contract Forms .........................................52

Section - VII General Conditions of Contract…………………………………………….…56
Section - VIII Special Conditions of Contract………………………………………….…....82
Section - IX Contract Forms ………………………………………………………………..86
 Invitation for Bids
Local Government
Budhanilkantha Municipality
Office of the Municipal Executive
Hattigaunda, Kathmandu

Invitation Electronic Bids for Construction of Ganesh Mavi Building at ward no- 2
Contract Identification No: NCB/BNP/CW/080_081/32
Date of publication: 2081/03/14
1. Budhanilkantha Municipality Office invites electronic bids from Nepalese eligible bidders for the
Construction of Ganesh Mavi Building at ward no- 2 under National Competitive Bidding
procedures. The estimated amount for the works is Rs. 4,896,131.27 inclusive of VAT and PS.
2. Eligible Bidders may visit PPMO website www.bolpatra.gov.np/egp.
3. A complete set of Bidding Documents shall be purchased electronically by eligible Bidders for e-
submission from PPMO’s Web Site www.bolpatra.gov.np./egp,. Bidders, submitting their bid
electronically, must deposit the cost of NRs. 3,000.00 of bidding document in the Project’s Rajaswa
(revenue) account as specified below and the scanned copy (pdf format) of the Bank deposit
voucher shall be uploaded by the bidder at the time of electronic submission of the bids. Information
to deposit the cost of bidding document in Bank:
Name of the Bank: Prabhu Bank, Hattigauda, Kathmandu
Name of Office: Budhanilkantha Municipality Office
Rajaswa (revenue) Shirshak no. : 1000095262500096
4. Pre-bid meeting shall be held at Budhanilkantha Municipality Office at 13:00 hours on 2081/04/06.
5. Electronic bids must be submitted through PPMO website www.bolpatra.gov.np/egp on or before
12:00 hours on 2081/04/16. Bids received after this deadline will be rejected.
6. The bids shall be opened in the presence of Bidders' representatives who choose to attend at 13:00
hours 2081/04/16 at the office of Hattigaunda, Kathmandu. Bids must be valid for a period of 90
days after bid opening and must be accompanied by a bid security or scanned copy of the bid security
in .pdf format in case of e-bid, amounting to a minimum of 1,05,000.00, which shall be valid for 30
days beyond the validity period of the bid.
7. If the last date of purchasing and /or submission falls on a government holiday, then the next working
day shall be considered as the last date. In such case the validity period of the bid and bid security
shall remain the same as specified for the original last date of bid submission.

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 Part - I Bidding Procedures
Table of Clauses
Section-I Instruction to Bidders……………………………………………………….. 4
A. General …………………………………………………………………………………………….... 4
1. Scope of Bid ................................................................................................................................... 4
2. Source of Funds ............................................................................................................................. 4
3. Fraud and Corruption .................................................................................................................... 4
4. Eligible Bidders ............................................................................................................................. 7
5. Eligible Materials, Equipment and Services ................................................................................ 8

B. Contents of Bidding Document ................................................................................................................ 9

6. Sections of Bidding Document ..................................................................................................... 9
7. Clarification of Bidding Document, Site Visit, Pre-Bid Meeting ............................................... 9
8. Amendment of Bidding Document ............................................................................................. 10
C. Preparation of Bids .................................................................................................................................. 10
9. Cost of Bidding ............................................................................................................................ 10
10. Language of Bid ... ................................................................................................................... . 10
11. Documents Comprising the Bid .......................................................................................... .... 11
12. Letter of Bid and Schedules ... ............................................................................................. .... 11
13. Bid Prices and Discounts ... ................................................................................................... ... 11
14. Currency of Bid and Payment ............................................................................................... ... 12
15. Period of Validity of Bids ... .................................................................................................... .. 12
16. Bid Security ............................................................................................................................. .. 12
17. Format and Signing of Bid ………………………................................................................. .. 13
D. Submission and Opening of Bids ………………………………………………………………........ 14
18. Sealing and Marking of Bids .................................................................................................... . 14
19. Deadline for Submission of Bids ... ......................................................................................... ... 14
20. Late Bids ... ................................................................................................................................. 14
21. Withdrawal and Modification of Bids ... ................................................................................. ... 14
22. Bid Opening ... ......................................................................................................................... ... 15
E. Evaluation and Comparison of Bids ... ........................................................................................ ....... 16
23. Confidentiality ......................................................................................................................... ... 16
24. Clarification of Bids ... ............................................................................................................. ... 16
25. Deviations, Reservations, and Omissions ... ............................................................................ ... 17
26. Determination of Responsiveness ........................................................................................... ... 17
27. Nonconformities, Errors, and Omissions ................................................................................. .. 17
28. Correction of Arithmetical Errors ... ......................................................................................... .. 18
29. Evaluation of Bids ................................................................................................................... ... 18
30. Comparison of Bids ... .............................................................................................................. .. 19
31. Employer’s Right to Accept Any Bid, and to Reject Any or All Bids... ............................... ... 19
F. Award of Contract ... ..................................................................................................................... …. 19
32. Award Criteria ......................................................................................................................... ... 19
33. Letter of Intent to Award the Contract/ Notification of Award ............................................. ... 19
34. Performance Security ... ............................................................................................................ .. 20
35. Signing of Contract ... ............................................................................................................... .. 20
36. Complaint and Review ... ................................................................................................................. .... 21

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 SECTION– I: Instructions to Bidders
This section specifies the procedures to be followed by Bidders in the preparation and submission of
their Bids. Information is also provided on the submission, opening, and evaluation of bids and on
the award of contract.

A. General
1. Scope of Bid 1.1 In connection with the Invitation for Bids indicated in the Bid Data Sheet (BDS), the
Employer, as indicated in the BDS, issues this Bidding Document for the procurement of
Works as specified in Section V (Works Requirements). The name, identification, and
number of Contracts of the National Competitive Bidding (NCB) are provided in the
BDS.
1.2 Throughout this Bidding Document:
(a) the term “in writing” means communicated in written form and delivered against
receipt;
(b) except where the context requires otherwise, words indicating the singular
also include the plural and words indicating the plural also include the singular;
and
(c) “day” means calendar day.
2. Source of Funds 2.1 GoN Funded: In accordance with its annual program and budget, approved by the
GoN, the implementing agency indicated in the BDS plans to apply a portion of the
allocated budget to eligible payments under the contract(s) for which this Bidding
Document is issued.
Or
Public Entities' own Resource Funded: In accordance with its annual program and
budget, approved by the public entity, the implementing agency indicated in the BDS
plans to apply a portion of the allocated budget to eligible payments under the
contract(s) for which this Bidding Document is issued.
Or
DP Funded: The GoN has applied for or received financing (hereinafter called
“funds”) from the Development Partner (hereinafter called “the DP”) indicated in
the BDS toward the cost of the project named in the BDS. The GoN intends to apply
a portion of the funds to eligible payments under the contract(s) for which this Bidding
Document is issued.
2.2 DP Funded: Payment by the DP will be made only at the request of the GoN and upon
approval by the DP in accordance with the terms and conditions of the financing
agreement between the GoN and the DP (hereinafter called the “Loan/Grant
Agreement”), and will be subject in all respects to the terms and conditions of that
Loan/Grant Agreement. No party other than the GoN shall derive any rights from the
Loan Agreement or have any claim to the funds.
3. Fraud and 3.1 Procuring Entities as well as bidders, suppliers and contractors and their sub-contractors

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Corruption under GoN/DP-financed contracts, shall adhere to the highest standard of ethics
during the procurement and execution of such contracts. In pursuance of this;
(a) the Employer adopts, for the purposes of this provision, the terms as defined below:
(i) “corrupt practice” means the offering, giving, receiving, or soliciting,
directly or indirectly, anything of value to influence improperly the actions of
another party;
(ii) “fraudulent practice” means any act or omission, including a
misrepresentation, that knowingly or recklessly misleads, or attempts to
mislead, a party to obtain a financial or other benefit or to avoid an
obligation;
(iii) “coercive practice” means impairing or harming, or threatening to impair
or harm, directly or indirectly, any party or the property of the party to
influence improperly the actions of a party;
(iv) “collusive practice” means an arrangement between two or more parties
designed to achieve an improper purpose, including influencing improperly
the actions of another party.
v) “obstructive practice” means (a) deliberately destroying, falsifying,
altering, or concealing of evidence material to an investigation; (b)
making false statements to investigators in order to materially
impede an investigation; (c) failing to comply with requests to
provide information, documents, or records in connection with an
investigation; (d) threatening, harassing, or intimidating any party to
prevent it from disclosing its knowledge of matters relevant to the
investigation or from pursuing the investigation; or (e) materially
impeding GoN/DP’s contractual rights of audit or access to
information; and
vi) “integrity violation” is any act which violates Anticorruption Policy,
including (i) to (v) above and the following: abuse, conflict of interest,
violations of GoN/DP sanctions, retaliation against whistleblowers or
witnesses, and other violations of Anticorruption Policy, including
failure to adhere to the highest ethical standard.
(b) the Employer will reject a proposal for award if it determines that the Bidder
recommended for award has, directly or through an agent, engaged in corrupt,
fraudulent, collusive, coercive, or obstructive practices or other integrity violations
in competing for the contract;
(c) DP will cancel the portion of the financing allocated to a contract if it determines at
any time that representative(s) of the GoN or of a beneficiary of DP-financing
engaged in corrupt, fraudulent, collusive, or coercive practices or other integrity
violations during the procurement or the execution of that contract, without the GoN
having taken timely and appropriate action satisfactory to DP to remedy the
situation.
(d) DP will impose remedial actions on a firm or an individual, at any time, in
accordance with DP's Anticorruption Policy and related Guidelines (as amended
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 from time to time), including declaring ineligible, either indefinitely or for a stated
period of time, to participate in DP-financed, -administered, or -supported activities
or to benefit from an DP-financed, -administered, or -supported contract,
financially or otherwise, if it at any time determines that the firm or individual has,
directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive, or
obstructive practices or other integrity violations; and
(e) The Contractor shall permit the GoN/DP to inspect the Contractor’s accounts and
records relating to the performance of the Contractor and to have them audited by
auditors appointed by the GoN/DP, if so required by the GoN/DP.
3.2 The Bidder shall not carry out or cause to carry out the following acts with an
intention to influence the implementation of the procurement process or the
procurement agreement :
(a) give or propose improper inducement directly or indirectly,
(b) distortion or misrepresentation of facts,
(c) engaging in corrupt or fraudulent practice or involving in such act,
(d) interference in participation of other competing bidders,
(e) coercion or threatening directly or indirectly to cause harm to the person or
the property of any person to be involved in the procurement proceedings,
(f) collusive practice among bidders before or after submission of bids for distribution
of works among bidders or fixing artificial/uncompetitive bid price with an
intention to deprive the Employer the benefit of open competitive bid price,
(g) contacting the Employer with an intention to influence the Employer with
regards to the bids or interference of any kind in examination and evaluation of
the bids during the period from the time of opening of the bids until the
notification of award of contract.
3.3 PPMO, on the recommendation of the Procuring Entity may blacklist a Bidder for
a period of one (1) to three (3) years for its conduct including on the following grounds
and seriousness of the act committed by the bidder:
(a) if convicted by a court of law in a criminal offence which disqualifies the Bidder
from participating in the contract,
(b) if it is established that the contract agreement signed by the Bidder was based on
false or misrepresentation of Bidder’s qualification information,
(c)if it at any time determines that the firm has, directly or through an agent, engaged
in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing
for, or in executing, a GoN/DP-financed contract.
(d) if the successful bidder fails to sign the contract.
(e) if the bidder fails to inform about the saturation of maximum number of contracts
as per ITB 4.9.
3.4 A bidder declared blacklisted and ineligible by the GoN, Public Procurement Monitoring
Office (PPMO) and/or the DP in case of DP funded project, shall be ineligible to bid for
a contract during the period of time determined by the GoN, PPMO and/or the DP.
3.5 In case of a natural person or firm/institution/company which is already declared
5
 blacklisted and ineligible by the GoN, any other new or existing
firm/institution/company owned partially or fully by such Natural person or Owner or
Board of director of blacklisted firm/institution/company; shall not be eligible bidder.
3.6 Furthermore, Bidders shall be aware of the provisions of GCC (GCC 28.3 and 72.3(j).
4. Eligible Bidders 4.1 A Bidder may be a natural person, private entity, or government - owned entity—subject
to ITB 4.5—or any combination of them in the form of a Joint Venture (JV) under an
existing agreement, or with the intent to constitute a legally-enforceable joint venture. In
the case of a JV:
(a) all partners shall be jointly and severally liable for the execution of the Contract
in accordance with the Contract terms. Maximum number of JV shall be as
specified in the BDS. The eligibility criteria requirement of the parties to the JV
shall be as specified in Section III Evaluation and Eligibility Criteria, and
(b) the JV shall nominate a Representative who shall have the authority to conduct all
business for and on behalf of any and all the parties of the JV during the bidding
process and, in the event the JV is awarded the Contract, during Contract
execution.
4.2 A Bidder, and all parties constituting the Bidder, shall have the nationality of any country
or eligible countries mentioned in the BDS. A Bidder shall be deemed to have the
nationality of a country if the Bidder is a citizen or is constituted, or incorporated, and
operates in conformity with the provisions of the laws of that country. This criterion shall
also apply to the determination of the nationality of proposed sub Contractors or suppliers
for any part of the Contract including related services.
4.3 A Bidder shall not have a conflict of interest. A Bidder found to have a conflict of interest
shall be disqualified. if any of, including but not limited to, the following apply:
(a) they have controlling partners in common; or
(b) they receive or have received any direct or indirect subsidy from any of them; or
(c) they have the same legal representative for purposes of this bid; or
(d) they have a relationship with each other, directly or through common third parties,
that puts them in a position to have access to information about or improperly
influence on the Bid of another Bidder, or influence the decisions of the Employer
regarding this bidding process; or
(e) a Bidder participates in more than one bid in this bidding process either
individually or as a partner in a joint venture. This will result in the disqualification
of all Bids in which it is involved. However, subject to any finding of a conflict of
interest in terms of ITB 4.3 (a)-(d) above, this does not limit the participation of the
same subcontractor in more than one bid; or
(f) a Bidder or any of its affiliated entity, participated as a consultant in the
preparation of the design or technical specifications of the works that are the subject
of the Bid; or
(g) a Bidder was affiliated with a firm or entity that has been hired (or is proposed to be
hired) by the Employer as Engineer for the Contract.

6
 (h) a Bidder that has a close business or family relationship with a professional staff
of the Procuring Entity.
4.4 A firm that is under a declaration of ineligibility by the GoN/DP in accordance with ITB
3, at the date of the deadline for bid submission or thereafter, shall be disqualified. A firm
shall not be eligible to participate in any procurement activities under an DP-financed, -
administered, or -supported project while under temporary suspension or debarment by
DP pursuant to the DP's Anticorruption Policy (see ITB 3), whether such debarment was
directly imposed by the DP, or enforced by other DPs pursuant to the Agreement for
Mutual Enforcement of Debarment Decisions. A bid from a temporary suspended or
debarred firm will be rejected.
4.5 Enterprises owned by Government shall be eligible only if they can establish that they are
legally and financially autonomous and operate under commercial law, and that they are
not a dependent agency of the GoN.
4.6 Bidders shall provide such evidence of their continued eligibility satisfactory to the
Employer, as the Employer shall reasonably request.
4.7 Firms shall be excluded in any of the cases, if
(a) by an act of compliance with a decision of the United Nations Security
Council taken under Chapter VII of the Charter of the United Nations, Nepal
prohibits any import of goods or Contracting of works or services from that
country or any payments to persons or entities in that country.
(b) DP Funded: as a matter of law or official regulation, Nepal prohibits
commercial relations with that country, provided that the DP is satisfied that
such exclusion does not preclude effective competition for the supply of goods
or related services required;
(c) DP Funded: a firm has been determined to be ineligible by the DP in relation
to their guidelines or appropriate provisions on preventing and combating
fraud and corruption in projects financed by them.

4.8 Maximum number of running contracts that a Bidder, and all parties constituting
the Bidder can have shall be as specified in BDS. The bidders shall be considered
ineligible if number of running contracts exceeds the number as specified.
4.9 For the purpose of ITB 4.8 above, the bidder shall declare that the bidder, and all
parties constituting the Bidder have not running contracts more than the number
as specified in BDS. If the bidder, and all parties constituting the Bidder has
participated in bidding processes of many public entities and during that period
the maximum number of contracts as specified saturates due to issuance of letters
of acceptance by a particular public entity, the bidder shall inform in written to all
other concerned public entities, where the bidder have participated in bidding
process, within three days of issuance of last letter of acceptance that saturates the
maximum number of contracts as specified.
5. Eligible 5.1 The materials, equipment and services to be supplied under the Contract shall have their
Materials, origin in any source countries as defined in ITB 4.2 above and all expenditures under the
7
Equipment and Contract will be limited to such materials, equipment, and services. At the Employer’s
Services request, Bidders may be required to provide evidence of the origin of materials,
equipment and services.
5.2 For purposes of ITB 5.1 above, “origin” means the place where the materials and
equipment are mined, grown, produced or manufactured, and from which the services are
provided. Materials and equipment are produced when, through manufacturing,
processing, or substantial or major assembling of components, a commercially
recognized product results that differs substantially in its basic characteristics or in
purpose or utility from its components.
B. Contents of Bidding Documents
6. Sections of 6.1 The Bidding Document consist of Parts I, II, and III, which include all the
Bidding Document Sections indicated below, and should be read in conjunction with any Addenda
issued in accordance with ITB 8.
PART I Bidding Procedures
Section I Instructions to Bidders (ITB)
Section II Bid Data Sheet (BDS)
Section III Evaluation and Eligibility Criteria (EEC)
Section IV Bidding Forms (BDF)
PART II Requirements
Section V Works Requirements (WRQ)
Section VI Bill of Quantities (BOQ)
PART III Conditions of Contract and Contract Forms
Section VII General Conditions of Contract (GCC)
Section VIII Special Conditions of Contract (SCC)
Section IX Contract Forms (COF)
6.2 The Invitation for Bids issued by the Employer is not part of the Bidding Document.
6.3 The Employer is not responsible for the completeness of the Bidding Document and their
Addenda, if they were not obtained directly from the source stated by the Employer in
the Invitation for Bids.
6.4 The Bidder is expected to examine all instructions, forms, terms, and specifications in the
Bidding Document and to furnish with its bid all information and documentation as is
required by the Bidding Documents. Failure to furnish all information or documentation
required by the Bidding Document may result in the rejection of the bid.
7. Clarification of 7.1 A prospective Bidder requiring any clarification of the Bidding Document shall contact
Bidding Document, the Employer in writing at the Employer’s address indicated in the BDS or raise any
Site Visit, Pre-Bid
question or curiosity during the pre-bid meeting if provided for in accordance with
Meeting
ITB 7.4. The Employer will respond in writing to any request for clarification,
provided that such request is received within the period as mentioned in ITB 7.5.
The Employer shall forward copies of its response to all Bidders who have acquired
the Bidding Document in accordance with ITB 6.3, including description of the
inquiry but without identifying its source. Should the Employer deem it necessary
8
 to amend the Bidding Document as a result of a request for clarification, it shall do so
following the procedure under ITB 8 and ITB 17.2
7.2 The Bidder is advised to visit and examine the Site of Works and its surroundings and
obtain for itself, on its own risk and responsibility, all information that may be necessary
for preparing the bid and entering into a Contract for construction of the Works. The costs
of visiting the Site shall be at the Bidder’s own expense.
7.3 The Bidder and any of its personnel or agents will be granted permission by the Employer
to enter upon its premises and lands for the purpose of such visit, but only upon the
express condition that the Bidder, its personnel, and agents will release and indemnify the
Employer and its personnel and agents from and against all liability in respect thereof,
and will be responsible for death or personal injury, loss of or damage to property, and
any other loss, damage, costs, and expenses incurred as a result of the inspection.
7.4 The Bidder’s designated representative is invited to attend a pre-bid meeting, if provided
for in the BDS. The purpose of the meeting will be to clarify issues and to answer
questions on any matter that may be raised at that stage. 7.5 The Bidder is requested,
as far as possible, to submit any questions in writing, to reach the Employer as
mentioned in BDS.
7.5 The Bidder is requested, to submit any questions in writing, to reach the Employer as
mentioned in BDS.
7.6 Minutes of the pre-bid meeting, including the text of the questions raised, without
identifying the source, and the responses given, together with any responses prepared
after the meeting, will be transmitted promptly to all Bidders who have acquired the
Bidding Document in accordance with ITB 6.3. Any modification to the Bidding
Document that may become necessary as a result of the pre-bid meeting shall be made
by the Employer exclusively through the issue of an addendum pursuant to ITB 8 and not
through the minutes of the pre-bid meeting.
7.7 Nonattendance at the pre-bid meeting will not be a cause for disqualification of a Bidder.
8. Amendment of 8.1 At any time prior to the deadline for submission of bids, the Employer may amend the
Bidding Document Bidding Document by issuing agenda.
8.2 Any addendum issued shall be part of the Bidding Document and shall be
communicated in writing to all who have obtained the Bidding Document from the
Employer in accordance with ITB 6.3.
8.3 To give prospective Bidders reasonable time in which to take an addendum into account
in preparing their bids, the Employer may, at its discretion, extend the deadline for the
submission of bids, pursuant to ITB 19.2. However, the time available to submit bids
shall not be less than five (5) days since amendment in bidding document.
C. Preparation of Bids
9. Cost of Bidding 9.1 The Bidder shall bear all costs associated with the preparation and submission of its Bid,
and the Employer shall in no case be responsible or liable for those costs, regardless of
the conduct or outcome of the bidding process.
10. Language of Bid 10.1 The Bid, as well as all correspondence and documents relating to the bid exchanged by

9
 the Bidder and the Employer, shall be written in the language specified in the BDS.
Supporting documents and printed literature that are part of the Bid may be in another
language provided they are accompanied by an accurate translation of the relevant
passages in the language specified in the BDS, in which case, for purposes of
interpretation of the Bid, such translation shall govern.
11. Documents 11.1 The Bid shall comprise the following:
Comprising the Bid
(a) Letter of Bid;
(b) completed Bill of Quantities (BoQ), in accordance with ITB 12 and ITB 13, or
as stipulated in the BDS;
(c) Bid Security, in accordance with ITB 16;
(d) written confirmation authorizing the signatory of the Bid to commit the Bidder, in
accordance with ITB 17.2;
(e) documentary evidence of establishing the Bidder’s eligibility;
(f) Bids submitted by a Joint Venture shall include a copy of the Joint Venture
Agreement entered into by all partners. Alternatively, a Letter of Intent to
execute a Joint Venture Agreement in the event of a successful Bid shall be
signed by all partners and submitted with the Bid, together with a copy of the
proposed agreement. The Joint Venture agreement, or letter of intent to enter
into a Joint Venture including a draft agreement shall indicate at least the parts
of the Works to be executed by the respective partners; and
(h) any other required documents, which is not against the provision of Procurement
Act/Regulation/Directives and Standard Bidding Document issued by PPMO as
specified in the BDS.
11.2 The Bidder is solely responsible for the authenticity of the submitted documents.
12. Letter of Bid 12.1 The Letter of Bid, Schedules, and all documents listed under ITB 11, shall be prepared
and Schedules using the relevant forms in Section IV (Bidding Forms) and in Section VI (Bill of
Quantities).The forms must be completed without any alterations to the text, and no
substitutes shall be accepted. All blank spaces shall be filled in with the information
requested.
13. Bid Prices and 13.1 The prices and discounts quoted by the Bidder in the Letter of Bid and in the Schedules
Discounts shall conform to the requirements specified below.
13.2 The Bidder shall submit a bid for the whole of the works described in ITB 1.1 by
filling in prices for all items of the Works, as identified in Section VI (Bill of Quantities).
In case of Unit Rate Contracts, the Bidder shall fill in rates and prices for all items of the
Works described in the Bill of Quantities. Items against which no rate or price is entered
by the Bidder will not be paid for by the Employer when executed and shall be deemed
covered by the rates for other items and prices in the Bill of Quantities.
13.3 The price to be quoted in the Letter of Bid shall be the total price of the Bid, excluding
any discounts offered. Absence of the total price in the Letter of Bid or the Bid Price in
the Bill of Quantities shall result in rejection of the Bid.
13.4 The Bidder shall quote any discounts and the methodology for their application in the

10
 Letter of Bid, in accordance with ITB 12.1.
13.5 If so indicated in ITB 1.1 and ITB 29.4, bids are invited for individual Contracts or for
any combination of Contracts (packages). Bidders wishing to offer any price reduction
for the award of more than one Contract shall specify in their bid the price reductions
applicable to each package, or alternatively, to individual Contracts within the package.
Price reductions or discounts shall be submitted in accordance with ITB 13.4, provided
the bids for all Contracts are submitted and opened at the same time.
13.6 Unless otherwise provided in the BDS and the Conditions of Contract, the prices quoted
by the Bidder shall be fixed. If the prices quoted by the Bidder are subject to adjustment
during the performance of the Contract in accordance with the provisions of the
Conditions of Contract, the Bidder shall furnish the indices and weightings for the price
adjustment formulae in the Table of Adjustment Data in Section IV (Bidding Forms) and
the Employer may require the Bidder to justify its proposed indices and weightings.
13.7All duties, taxes, and other levies payable by the Contractor under
the Contract, or for any other cause, as of the date 30 days prior to the deadline for
submission of bids, shall be included in the rates and prices and the total bid price
submitted by the Bidder.
14. Currency of Bid 14.1 The currency of the bid and payment shall be in Nepalese Rupees.
and Payment
15. Period of 15.1 Bids shall remain valid for the period specified in the BDS after the bid submission
Validity of Bids deadline date prescribed by the Employer. If the prescribed bid submission deadline date
falls on a government holiday, then the next working day shall be considered as the
bid submission deadline date. In such case the validity period of the bids shall be
considered from the original bid submission deadline date. A bid valid for a shorter
period shall be rejected by the Employer as nonresponsive.
15.2 In exceptional circumstances, prior to the expiration of the bid validity period, the
Employer may request Bidders to extend the period of validity of their Bids. The request
and the responses shall be made in writing. If a bid security is requested in accordance
with ITB 16, it shall also be extended 30 days beyond the deadline of the extended validity
period. A Bidder may refuse the request without forfeiting its bid security. A Bidder
granting the request shall not be required or permitted to modify its bid and to include
any additional conditions against the provisions specified in Bid Documents.
16. Bid Security 16.1 The Bidder shall furnish as part of its bid, in original form, a bid security as specified in
the BDS. In case of e-submission of bid, the Bidder shall upload scanned copy of Bid
security letter at the time of electronic submission of the bid. The Bidder accepts that the
scanned copy of the Bid security shall, for all purposes, be equal to the original. The
details of original Bid Security and the scanned copy submitted with e-bid should be the
same otherwise the bid shall be non-responsive.

11
 16.2 The bid security shall be, at the Bidder’s option, in any of the following forms:
(a) an unconditional bank guarantee from Commercial Bank or Financial Institution
eligible to issue Bank Guarantee as per prevailing Law or;
(b) a cash deposit voucher in the Employer's Account as specified in BDS.
In the case of a bank guarantee, the bid security shall be submitted either using the Bid
Security Form included in Section IV (Bidding Forms) or in another Form acceptable to
the employer. The form must include the complete name of the Bidder. The bid security shall
be valid for minimum thirty (30) days beyond the original validity period of the bid, or
beyond any period of extension if requested under ITB 15.2.
16.3 Any bid not accompanied by an enforceable and substantially compliant bid security
shall be rejected by the Employer as nonresponsive. In case of e- Submission, if the
scanned copy of an acceptable Bid Security letter is not uploaded with the electronic Bid
then Bid shall be rejected.
16.4 The bid security of unsuccessful Bidders shall be returned within three days, once the
successful bidder has furnished the required performance security and signed the Contract
Agreement pursuant to ITB 34.1and 35.1.
16.5 The bid security shall be forfeited if:
(a) a Bidder requests for withdrawal or modification of its bid, except as provided
in ITB 15.2:
(i) during the period of bid validity specified by the Bidder on the Bid, in case of
electronic submission;
(ii) from the period twenty-four hours prior to bid submission deadline up to the
period of bid validity specified by the Bidder on the Letter of Bid, in case of
hard copy submission.
(b) a Bidder changes the prices or substance of the bid while providing information
pursuant to clause ITB 24.1;
(c) a Bidder involves in fraud and corruption pursuant to clause 3.1;
(d) the successful Bidder fails to:
(i) furnish a performance security in accordance with ITB 34.1; or
(ii) sign the Contract in accordance with ITB 35.1
(iii) accept the correction of arithmetical errors pursuant to clause 28.1;
16.6 The Bid Security of a JV shall be in the name of the JV that submits the bid. If the JV
has not been legally constituted at the time of bidding, the Bid Security shall be in the
names of all future partners as named in the letter of intent mentioned in ITB 4.1.
17. Format and 17.1 The Bidder shall prepare one original of the documents comprising the bid as
Signing of Bid described in ITB 11 and clearly mark it ORIGINAL”. In addition, the Bidder shall
submit copies of the bid in the number specified in the BDS, and clearly mark each
of them “COPY.” In the event of any discrepancy between the original and the
copies, the original shall prevail. In case of e-submission of bid, the Bidder shall
submit his bid electronically in PDF or web forms files as specified in ITB Clause
18.1(b),

12
 17.2 The original and all copies of the bid shall be typed or written in indelible ink and shall
be signed by a person duly authorized to sign on behalf of the Bidder. This authorization
shall consist of a written confirmation as specified in the BDS and shall be attached to
the bid. The name and position held by each person signing the authorization must be
typed or printed below the signature. All pages of the bid, except for un amended printed
literature, shall be signed or initialed by the person signing the bid.
17.3 Any amendments such as interlineations, erasures, or overwriting shall be valid only if
they are signed or initialed by the person signing the bid.
D. Submission and Opening of Bids
18. Sealing and 18.1 Unless otherwise specified in BDS, Bidders shall submit their bids by electronic or by
Marking of Bids mail/by hand/by courier. Procedures for submission, sealing and marking are as
follows:
(a) Bidders submitting bids by mail, by hand or by courier
i. Bidders shall enclose the original and each copy of the Bid. These envelopes
containing the original and the copies shall then be enclosed in one single
envelope.
ii. The inner and outer envelopes shall:
(aa) bear the name and address of the Bidder;
(bb) be addressed to the Employer as provided in BDS19.1;
(cc)bear the specific identification of this bidding process indicated in BDS
1.1; and
(dd) bear a warning not to open before the time and date for bid opening.
iii. If all envelopes are not sealed and marked as required, the Employer will
assume no responsibility for the misplacement or premature opening of the bid.
(b) Bidders submitting Bids electronically shall follow the electronic bid submission
procedure specified in BDS.
19. Deadline for 19.1 Bids must be received by the Employer at the address and no later than the date and time
Submission of Bids indicated in the BDS. In case of e-submission, the standard time for e-submission is
Nepalese Standard Time as set out in the server. The e-procurement system will accept
the e-submission of bid from the date of publishing of notice and will automatically not
allow the e-submission of bid after the deadline for submission of bid.
19.2 The Employer may, at its discretion, extend the deadline for the submission of bids by
amending the Bidding Document in accordance with ITB 8, in which case all rights and
obligations of the Employer and Bidders previously subject to the deadline shall
thereafter be subject to the deadline as extended.
20. Late Bids 20.1 The Employer shall not consider any bid that arrives after the deadline for submission of
bids, in accordance with ITB 19. Any bid received by the Employer after the deadline for
submission of bids shall be declared late, rejected, and returned unopened to the Bidder.
21. Withdrawal, 21.1 A Bidder may withdraw, or modify its bid after it has been submitted either in
and Modification of hard copy or by e-submission. Procedures for withdrawal or modification of submitted
Bids
bids are as follows:
13
 (i) Bids submitted in hard Copy
a) Bidders may withdraw or modify its bids by sending a written notice in a sealed
envelope, duly signed by an authorized representative, and shall include a copy
of the authorization in accordance with ITB 17.2 before 24 hours prior to the
last deadline of submission of bid. The corresponding modification of the bid
must accompany the respective written notice. All notices must be:
(aa) prepared and submitted in accordance with ITB 17 and ITB 18,and in
addition, the respective envelopes shall be clearly marked
“WITHDRAWAL”, “MODIFICATION;” and
(bb) received by the Employer twenty four hour hours prior to the deadline
prescribed for submission of bids, in accordance with ITB 19.
ii) E-submitted bids.
a) Bidder may submit modification or withdrawal prior to the deadline
prescribed for submission of bids through e-GP system by using the forms and
instructions provided by the system.
21.2. Bids requested to be withdrawn in accordance with ITB 21.1 shall not be opened. In
case of hard copy submission, the Bid will be returned unopened to the Bidders.
21.3 Except in case of any modification or correction in bid document made by procuring
entity, Bidder may submit request for withdrawal or modification only one time.
21.4 In case of hard copy bid, no bid may be withdrawn if the bid has already been
modified; except in case of any modification or correction in bid document by
procuring entity.

21.5 Request for withdrawal or modification must be made through the same medium of
submission. Request for withdrawal or modifications through different medium shall not
be considered.
21.6 The following provisions apply for withdrawal or modification of the Bids:
(i) In case of bids submitted in hard copy no bid shall be withdrawn or modified in the
interval between 24 hours prior to the deadline for submission of bids and the
expiration of the period of bid validity specified by the Bidder on the Letter of Bid
or any extension thereof.
(ii) In case of e-submitted bids no bids shall be withdrawn or modified in the
interval between deadline for submission of bids and the expiration of the period
of bid validity specified by the Bidder on the Letter of Bid or any extension
thereof.
21.7 Once a Bid is withdrawn, bidder will not be able to submit another bid for the same bid.
22. Bid Opening 22.1 The Employer shall open the bids in public at the address, date and time specified in the
BDS in the presence of Bidders` designated representatives who choose to attend.
22.2 The Employer shall download the e-submitted bid files. The e-procurement system
allows the Employer to download the e-submitted bid files (report) only after bid opening
date and time after login simultaneously by two members of the Bid opening committee.
14
 22.3 Electronically submitted bid shall be opened at first in the same time and date as specified
above. Electronic Bids shall be opened one by one and read out. The e-submitted bids
must be readable through open standards interfaces. Unreadable and or partially
submitted bid files shall be considered incomplete.
22.4 Thereafter, envelopes marked “WITHDRAWAL” shall be opened and read out and the
envelope with the corresponding bid shall not be opened, but returned to the Bidder. No
bid withdrawal shall be Permitted unless the corresponding withdrawal notice contains a
valid authorization to request the withdrawal and is read out at bid opening. Next,
envelopes marked “MODIFICATION” shall be opened and read out with the
corresponding bid. No bid modification shall be permitted unless the corresponding
modification notice contains a valid authorization to request the modification and is read
out at bid opening. Only envelopes that are opened and read out at bid opening shall be
considered further.
22.5 All other envelopes shall be opened one at a time, reading out: the name of the
Bidder; the Bid Price(s), including any discounts and alternative bids and indicating
whether there is a modification; the presence of a bid security and any other details as
the Employer may consider appropriate. Only discounts and alternative offers read out
at bid opening shall be considered for evaluation. No bid shall be rejected at bid
opening except for late bids, in accordance with ITB 20.1.
22.6 The Employer shall prepare a record of the bid opening that shall include, as a minimum:
the name of the Bidder and whether there is a withdrawal, or modification; the Bid Price,
per Contract if applicable, including any discounts and alternative offers; and the presence
or absence of a bid security. The Bidders’ representatives who are present shall be
requested to sign the record. The omission of a Bidder’s signature on the record shall not
invalidate the contents and effect of the record.
E. Evaluation and Comparison of Bids
23. Confidentiality 23.1 Information relating to the examination, evaluation, comparison, and recommendation
of Contract award, shall not be disclosed to Bidders or any other persons not officially
concerned with such process until information on Contract award is communicated to all
Bidders.
23.2 Any attempt by a Bidder to influence the Employer in the evaluation of the bids or
Contract award decisions may result in the rejection of its bid.
23.3 Notwithstanding ITB 23.2, from the time of bid opening to the time of Contract award,
if any Bidder wishes to contact the Employer on any matter related to the bidding process,
it may do so in writing.
24. Clarification of 24.1 To assist in the examination, evaluation, and comparison of the bids, the Employer may,
Bids at its discretion, ask any Bidder for a clarification of its bid. Any clarification submitted
by a Bidder that is not in response to a request by the Employer shall not be considered.
The Employer’s request for clarification and the response shall be in writing. No change
in the prices or substance of the bid shall be sought, offered, or permitted, except to
confirm the correction of arithmetic errors discovered by the Employer in the evaluation
of the bids, in accordance with ITB 28. In case of e-submission of bid, upon notification
15
 from the employer, the bidder shall also submit the original of documents comprising the
bid as per ITB 11.1 for verification of submitted documents for acceptance of the e-
submitted bid.
24.2 If a Bidder does not provide clarifications of its bid by the date and time set in the
Employer’s request for clarification, its bid may be rejected.
25. Deviations, 25.1 During the evaluation of bids, the following definitions apply:
Reservations, and
(a) “Deviation” is a departure from the requirements specified in the Bidding Document;
Omissions
(b) “Reservation” is the setting of limiting conditions or withholding from complete
acceptance of the requirements specified in the Bidding Document; and
(c) “Omission” is the failure to submit part or all of the information or documentation
required in the Bidding Document.
26. Determination 26.1 The Employer’s determination of a bid’s responsiveness is to be based on the contents
of Responsiveness of the bid itself, as defined in ITB11.
26.2 A substantially responsive bid is one that meets the requirements of the Bidding
Document without material deviation, reservation, or omission. A material deviation,
reservation, or omission is one that,
(a) if accepted, would:
(i) affect in any substantial way the scope, quality, or performance of the Works
specified in the Contract;
or
(ii) limit in any substantial way, inconsistent with the Bidding Document, the
Employer’s rights or the Bidder’s obligations under the proposed Contract; or
(b) if rectified, would unfairly affect the competitive position of other Bidders
presenting substantially responsive bids.
26.3 If a bid is not substantially responsive to the requirements of the Bidding Document, it
shall be rejected by the Employer and may not subsequently be made responsive by
correction of the material deviation, reservation, or omission.
26.4 In case of e-submission bids, the Employer evaluates the bid on the basis of the
information in the electronically submitted bid files. If the Bidder cannot substantiate
or provide evidence to establish the information provided in e-submitted bid through
documents/ clarifications as per ITB Clause 24.1, the bid shall not be considered
for further evaluation.

26.5 In Case, a corruption case is being filed to Court against the Natural Person or Board
of Director of the firm/institution /company or any partner of JV, such Natural Person
or Board of Director of the firm/institution /company or any partner of JV such
bidder’s bid shall be excluded from the evaluation, if public entity receives instruction
from Government of Nepal.

27. 27.1 Provided that a bid is substantially responsive, the Employer may waive any non-
Nonconformities, conformities in the bid that do not constitute a material deviation, reservation, or
Errors, and
omission.
16
Omissions 27.2 Provided that a bid is substantially responsive, the Employer may request that the Bidder
submit the necessary information or documentation, within a reasonable period of time,
to rectify nonmaterial nonconformities in the bid related to documentation requirements.
Requesting information or documentation on such nonconformities shall not be related
to any aspect of the price of the bid. Failure of the Bidder to comply with the request may
result in the rejection of its bid.
27.3 Provided that a bid is substantially responsive, the Employer shall rectify quantifiable
nonmaterial nonconformities related to the Bid Price. To this effect, the Bid Price shall
be adjusted, for comparison purposes only, to reflect the price of a missing or non-
conforming item or component. The adjustment shall be made using the methods
indicated in Section III (Evaluation and Eligibility Criteria).
27.4 If the monetary value of such non-conformities is found to be more than fifteen percent
of the Bid Price of the bidder on account of minor discrepancies pursuant to ITB 27.3,
such bid shall be considered non responsive and shall not be involved in evaluation.
28. Correction of 28.1 Provided that the bid is substantially responsive, the Employer shall correct arithmetical
Arithmetical Errors errors on the following basis:
(a) only for unit price Contracts, if there is a discrepancy between the unit price and the total
price that is obtained by multiplying the unit price and quantity, the unit price shall prevail
and the total price shall be corrected, unless in the opinion of the Employer there is an
obvious misplacement of the decimal point in the unit price, in which case the total price
as quoted shall govern and the unit price shall be corrected;
(b) if there is an error in a total corresponding to the addition or subtraction of subtotals, the
subtotals shall prevail and the total shall be corrected; and
(c) If there is a discrepancy between the bid price in the Summary of Bill of Quantities and
the bid amount in item (c) of the Letter of Bid, the bid price in the Summary of Bill of
Quantities will prevail and the bid amount in item (c) of the Letter of Bid will be
corrected.
(d) if there is a discrepancy between words and figures, the amount in words shall prevail,
unless the amount expressed in words is related to an arithmetic error, in which case the
amount in figures shall prevail subject to (a) ,(b) and (c) above.
28.2 If the Bidder that submitted the lowest evaluated bid does not accept the correction of
errors, its bid shall be disqualified and its bid security shall be forfeited.
29. Evaluation of 29.1 The Employer shall use the criteria and methodologies listed in this Clause. No other
Bids evaluation criteria or methodologies shall be permitted.
29.2 To evaluate a bid, the Employer shall consider the following:
(a) the bid price, excluding Value Added Tax , Provisional Sums, and the provision, if
any, for contingencies in the Summary Bill of Quantities, for Unit Rate Contracts, or
Schedule of Prices for lump sum Contracts, but including Day work items, where
priced competitively;
(b) adjustment for correction of arithmetic errors in accordance with ITB 28.1;
(c) adjustment due to discounts offered in accordance with ITB 13.4;

17
 (d) adjustment for nonconformities in accordance with ITB 27.3;
(e) application of all the evaluation factors indicated in Section III (Evaluation and
Eligibility Criteria);
29.3 The estimated effect of the price adjustment provisions of the Conditions of Contract,
applied over the period of execution of the Contract, shall not be taken into account in bid
evaluation.
29.4 If this Bidding Document allows Bidders to quote separate prices for different Lots
(Contracts), and to award multiple Contracts to a single Bidder as specified in BDS, the
methodology to determine the lowest evaluated price of the Contract combinations,
including any discounts offered in the Letter of Bid, is specified in Section III (Evaluation
and Eligibility Criteria).
29.5 if the bid for an Unit Rate Contract, which results in the lowest Evaluated Bid Price
is seriously unbalanced or front loaded or extremely low in the opinion of the
Employer, the Employer may require the Bidder to produce detailed price analysis
for any or all items of the Bill of Quantities, to demonstrate the internal consistency of
those prices with the construction methods and schedule proposed. After evaluation
of the price analysis, taking into consideration the schedule of estimated Contract
payments, the Employer may require that the amount of the performance security be
increased at the expense of the Bidder as mentioned in BDS to protect the Employer
against financial loss in the event of default of the successful Bidder under the Contract
or may consider the bid as non-responsive.
29.6 In case of e-submission bids, the Employer evaluates the bid on the basis of the
information in the electronically submitted bid files. If the Bidder cannot substantiate
or provide evidence to establish the information provided in e-submitted bid through
documents/ clarifications as per ITB Clause 24.1, the bid shall not be considered
for further evaluation.
29.7 In Case, a corruption case is being filed to Court against the Natural Person or Board
of Director of the firm/institution /company or any partner of JV, such Natural Person
or Board of Director of the firm/institution /company or any partner of JV such bidder’s
bid shall be excluded from the evaluation, if public entity receives instruction from
Government of Nepal.
30. Comparison of 30.1 The Employer shall compare all substantially responsive bids in accordance with ITB
Bids 29.2 to determine the lowest evaluated bid.
31. Employer’s 31.1 The Employer reserves the right to accept or reject any bid, and to annul the bidding
Right to Accept Any process and reject all bids at any time prior to Contract award, without thereby incurring
Bid, and to Reject any liability to Bidders. In case of annulment, all bids submitted and specifically, bid
Any or All Bids securities, shall be promptly returned to the Bidders.
F. Award of Contract
32. Award Criteria 32.1 The Employer shall award the Contract to the Bidder whose offer has been determined
to be the lowest evaluated bid and is substantially responsive to the Bidding Document,
provided further that the Bidder is determined to be qualified to perform the Contract
satisfactorily.
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33. Letter of Intent 33.1 The Employer shall notify the concerned Bidder whose bid has been selected in
to Award the accordance with ITB 32.1 within seven days of the selection of the bid, in writing that the
Contract/Notific Employer has intention to accept its bid and the information regarding the name, address
ation of Award and amount of selected bidder shall be given to all other bidders who submitted the bid.
33.2 After issuance of the notice under ITB 33.1 if the concerned bidder provides
information pursuant to ITB 4.9 regarding saturation of maximum number of
contracts, the employer shall disqualify the bidder and shall select the next lowest
evaluated Bidder in accordance with ITB 32.1 and notify accordingly as per ITB
33.1.
33.3 If no bidder submits an application pursuant to ITB 36 within a period of seven days of
the notice provided under ITB 33.1, the Employer shall, accept the bid selected in
accordance with ITB 32.1 and Letter of Acceptance shall be communicated to the
selected bidder prior to the expiration of period of Bid validity, to furnish the performance
security and sign the contract within fifteen days.

33.4 After communicating letter of acceptance under ITB 33.3, if the concerned bidder
provides information pursuant to ITB 4.9 regarding saturation of maximum number
of contracts, the employer shall reject the bid of that bidder and shall select the
next lowest evaluated Bidder in accordance with ITB 32.1 and shall issue the notice
accordingly as per ITB 33.1. In such case bid security of the rejected bidder shall
not be forfeited.
34. Performance 34.1 Within Fifteen (15) days of the receipt of Letter of Acceptance from the Employer, the
Security successful Bidder shall furnish the performance security as under mentioned from
Commercial Bank or Financial Institution eligible to issue Bank Guarantee as per
prevailing Law in accordance with the conditions of Contract using Sample Form for the
Performance Security included in Section IX (Contract Forms), or another form
acceptable to the Employer.
i) If bid price of the bidder selected for acceptance is up to 15 (fifteen) percent below the
approved cost estimate, the performance security amount shall be 5 (five) percent of
the bid price.
ii) For the bid price of the bidder selected for acceptance is more than 15 (fifteen) percent
below of the cost estimate, the performance security amount shall be determined as
follows:
Performance Security Amount =[(0.85 x Cost Estimate – Bid Price) x 0.5] + 5% of Bid Price.
The Bid Price and Cost Estimate shall be exclusive of Value Added Tax.
34.2 Failure of the successful Bidder to submit the above-mentioned Performance Security or
to sign the Contract Agreement shall constitute sufficient grounds for the annulment of
the award and forfeiture of the bid security. In that event the Employer may award the
Contract to the next lowest evaluated Bidder whose offer is substantially responsive and
is determined by the Employer to be qualified to perform the Contract satisfactorily. The
process shall be repeated according to ITB 33.
35.1 The Employer and the successful Bidder shall sign the Contract Agreement within the
19
35. Signing of period as stated ITB 34.1.
Contract 35.2 At the same time, the Employer shall affix a public notice on the result of the award on
its notice board and make arrangement for causing such notice to be affixed on the notice
board also of the District Coordination Committee, District Administration Office,
Provincial Treasury and Controller Office and District Treasury and Controller
Office. The Employer may make arrangements to post the notice into its website, if it
has; and if it does not have, into the website of the Public Procurement Monitoring Office,
identifying the bid and lot numbers and the following information: (i) the result of
evaluation of bid; (ii) date of publication of notice inviting bids; (iii) name of newspaper;
(iv) reference number of notice; (v) item of procurement; (vi) name and address of bidder
making contract and (vii) contract price.
35.3 Within thirty (30) days from the date of issuance of notification pursuant to ITB 33.1
unsuccessful bidders may request in writing to the Employer for a debriefing seeking
explanations on the grounds on which their bids were not selected. The Employer shall
promptly respond in writing to any unsuccessful Bidder who, requests for debriefing.
35.4 If the bidder whose bid is accepted fails to sign the contract as stated ITB 35.1, the Public
Procurement Monitoring Office shall blacklist the bidder on recommendation of the
Public Entity.
36. Complaint and 36.1 If a Bidder is dissatisfied with the Procurement proceedings or the decision made by the
Review Employer in the intention to award the Contract, it may file an application to the Chief of
the Public Entity within Seven (7) days of providing the notice under ITB 33.1 by the
Public Entity, for review of the proceedings stating the factual and legal grounds.
36.2 Late application filed after the deadline pursuant to ITB 36.1 shall not be processed.
36.3 The chief of Public Entity shall, within five (5) days after receiving the application,
give its decision with reasons, in writing pursuant to ITB 36.1:
(a) whether to suspend the procurement proceeding and indicate the procedure to be
adopted for further proceedings; or
(b) to reject the application.
The decision of the chief of Public Entity shall be final.

20
 SECTION - II
Bid Data Sheet
This section consists of provisions that are specific to each procurement and supplement the information
or requirements included in Section I. Instructions to Bidders.

A. General

ITB 1.1 The number of the Invitation for Bids is: NCB/BNP/CW/080_081/32

ITB 1.1 The Employer is: Budhanilkantha Municipality Office, Hattigaunda, Kathmandu

ITB 2.1 The name of the Project is Construction of Ganesh Mavi Building at ward no- 2
The implementing agency is: Budhanilkantha Municipality Office, Hattigaunda,
Kathmandu
ITB 4.1 (a) Maximum number of partner in a joint venture shall be : 3 (three)

ITB 4.2 Eligible countries: Nepal

ITB 4.8 & Maximum number of running contracts that a Bidder, and all parties constituting the Bidder can
have shall be : 5 (five)
4.9

B. Bidding Document
For clarification purposes only, the Employer’s address is:
ITB 7.1
Attention: Budhanilkantha Municipality Office Address: Hattigaunda, Kathmandu
Telephone: 0977-01-4372725 Facsimile number:
Electronic mail address: budhanilkanthamun@gmail.com
ITB 7.4 A Pre-Bid meeting shall be held.

ITB 7.5 Time for request: Requests for clarification should be received by the Employer no later than 10
days prior to the deadline for submission of bids.

C. Preparation of Bids

ITB 10.1 The language of the bid is: English / Nepali

ITB 11.1 (b) In accordance with ITB 12 and ITB 14, the following schedules shall be submitted with the bid,
including the priced Bill of Quantities for Unit Rate Contracts and Schedule of Prices for lump
sum contracts: N/A

ITB 11.1 (i) The Bidder shall submit with its bid the following additional documents:
NA

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 ITB 13.6 The prices quoted by the Bidder shall not be subject to adjustment during the performance of the
Contract.

ITB 15.1 The bid validity period shall be: Ninety (90) days

ITB 16.1 The Bidder shall furnish a bid security, from Commercial Bank or Financial Institution eligible to
issue Bank Guarantee as per prevailing Law with a minimum of Rs. 1,05,000.00, which shall be
valid for 30 days beyond the validity period of the bid.

ITB 16.2 (b) Account Name: Budhanilkantha Municipality

Bank Name: Prabhu Bank,Hattigauda
Bank Address: Budhanilkantha Municipality, Hattigaunda, Kathmandu
Account Number: 1000095262500046

ITB 17.1 In addition to the original of the bid, the number of copy/ies is/are: Not Applicable

ITB 17.2 The written confirmation of authorization to sign on behalf of the Bidder shall indicate:
(a) The name and description of the documentation required to demonstrate the authority
of the signatory to sign the Bid such as a Power of Attorney; and
(b) In the case of Bids submitted by an existing or intended JV, an undertaking signed by
all parties (i) stating that all parties shall be jointly and severally liable, and (ii)
nominating a Representative who shall have the authority to conduct all business for
and on behalf of any and all the parties of the JV during the bidding process and, in
the event the JV is awarded the Contract, during contract execution.

D. Submission and Opening of Bids

ITB 18.1 Bidders shall have the option of submitting their bids : by electronic only

ITB 18.1 (b) Electronic bid submission procedure:

(a) Bidders submitting Bids electronically shall follow the electronic bid submission procedures
specified in this clause.

i. Bidders who choose to submit their bids electronically, can view/download the bidding
documents from “published bids” section of e-GP systemhttps://bolpatra.gov.np/egp.
ii. For the purpose of e-Submission, the bidder shall, at first, register in e-GP system and
maintain their organization profile data and documents required during bid response
preparation. The details of e-GP registration and profile management procedure are
specified in Article No 9 and 10 respectively of e-GP Directives issued by PPMO, which
can be downloaded from Download section of e-GP system.
iii. In order to submit the bid, interested bidders shall deposit the cost of biding document in
the bank and account specified in Invitation for Bid (IFB). The scanned copy (in PDF
format) of the bank deposit voucher shall also be submitted along with the bid.

22
 iv. The bidders shall prepare their bids using data and documents maintained in bidder’s
profile, instruction provided by e-GP system and forms/format provided in the bidding
document.
v. Bidders may submit bids as a single entity or as a joint venture (JV). Bidder submitting
bid in JV shall have to upload joint venture agreement along with partner(s) Bolpatra ID
provided during bidder’s registration.
vi. Bidders (all partners in case of JV) shall update their profile data and documents
required during preparation and submission of their bids.
vii. In case of bid submission in JV, the consent of the partners shall be obtained through
the confirmation link sent to the registered email address and the partners shall have
to acknowledge their confirmation.
viii. Bidders shall submit the required documents as specified in Section I-Instruction to
Bidders, Section II-Bid Data Sheet and Section III-Evaluation and Eligibility
Criteria of the bidding document. The format of the documents shall be in PDF
and/or web form as provisioned in the e-GP system.
ix. After providing all the details and documents, the e-GP system will generate bid
response documents for the bidder. Bidders shall download, verify and confirm the
bid response documents prior to bid submission.
x. For verifying the authentic user, the system will send one time password (OTP) in
the registered e-mail address of the bidder. System will validate the OTP and then
only allow bidders to submit their bid.
xi. Electronically submitted bids can be modified and/or withdrawn through the system
within the bid submission deadline.
xii. The bidder/bid shall meet the following requirements and conditions for e-
submission of bids;
aa) The e-submitted bids must be readable through PDF reader.
bb) The bidders are fully responsible for using the e-GP system as per specified
procedures and in no case the employer shall be held liable for bidder's
inability to use the system.
cc) When a bidder submits electronic bid through the e-GP System, it is assumed
that the bidder has prepared the bid by studying and examining the complete
set of the bidding document and e-GP instruction including the provision
stipulated in e-GP Directives.

ITB 19.1 For bid submission purposes only, the Employer’s address is:
Attention: Budhanilkantha Municipality Office Address: Hattigaunda, Kathmandu
The deadline for bid submission is:
Date: 2081/04/16 Time : 12:00 hours

23
ITB 22.1 The bid opening shall take place at :
Address: Budhanilkantha Municipality Office, Kathmandu
Date : 2081/04/16 Time : 13:00hours

E. Evaluation and Comparison of Bids

NA
ITB 29.4

ITB 29.5 The amount of the performance security be increased by Eight (8) percent of the quoted bid price.

24
 SECTION - III
Evaluation and Eligibility Criteria
This Section contains all the criteria that the Employer shall use to evaluate bids and eligible Bidders. GoN/DP
requires bidders to be qualified by meeting predefined eligibility criteria. In accordance with ITB 29, no
other methods, criteria and factors shall be used. The Bidder shall provide all the information requested in the
forms included in Section IV (Bidding Forms).

1. Evaluation
In addition to the criteria listed in ITB 29.2 (a) - (e) the following criteria shall apply:
1.1 Multiple Contracts
Pursuant to Sub-Clause 29.4 of the Instructions to Bidders, if Works are grouped in multiple contracts,
evaluation will be as follows:

Works are grouped in multiple contracts and pursuant to Sub-Clause 29.4 of the Instructions to Bidders,
the Employer will evaluate and compare Bids on the basis of a contract, or a combination of contracts, or
as a total of contracts in order to arrive at the least cost combination for the Employer by taking into
account discounts offered by Bidders in case of award of multiple contracts.
1.2 Quantifiable Nonconformities and Omissions
Subject to ITB 13.2 and ITB 29.2, the evaluated cost of quantifiable nonconformities including omissions,
is determined as follows:

[Insert in bidding document: “Pursuant to ITB 27.3, the cost of all quantifiable nonmaterial
nonconformities shall be evaluated, but excluding omission of prices in the Bill of Quantities. The
Employer will make its own assessment of the cost of any nonmaterial nonconformities and omissions
for the purpose of ensuring fair comparison of bids.”]

2. Eligibility
Criteria Compliance Requirements Documents
Requirement Single Joint Venture Submission
Entity All Partners Each One Requirements
Combined Partner Partner
2.1 Conflict of Interest
No conflicts of
must meet existing or must meet not Letter of Bid
interest in
requirement intended JV requirement applicable
accordance with
must meet
ITB Sub-Clause
requirement
4.3.
2.2 Government/DP Eligibility
Not having been
must meet must meet must meet not Letter of Bid
declared
requirement requirement requirement applicable
ineligible by
government/DP,
as described in
ITB Sub-Clause
4.4.
25
 2.3 Government-owned Entity
Bidder required
must meet existing or must meet not Forms ELI - 1,
to meet
requirement intended JV requirement applicable ELI - 2, with
conditions of
must meet attachments
ITB Sub-Clause
requirement
4.5.
2.4 UN Eligibility
Not having been declared
must meet existing or must meet not Letter
ineligible based on a
requirement intended JV requirement applicable of Bid
United Nations resolution
must meet
or Employer's country law,
requirement
as described in ITB Sub-
Clause 4.7.
2.5 Bidder’s Running Contracts
Bidder’s Running
must meet existing or must meet not ELI-3
contracts2 not more than
requirement intended JV requirement applicable
five (5) as described in ITB
must meet
Sub-Clause 4.8.
requirement

2.6 Other Eligibility

Firm Registration Certificate must meet not must meet not Document
requirement applicable requirement applicable attachment

Business Registration must meet not must meet not Document

Certificate (Valid License) requirement applicable requirement applicable attachment

VAT and PAN Registration must meet not must meet not Document
certificate requirement applicable requirement applicable attachment

Tax clearances certificate for

must meet not must meet not Document
the F/Y 2079/80 or Tax requirement applicable requirement applicable attachment
return submission evidence
or evidence of tax time
extension for.
Additional requirements ……………. ………… …………… ………… …………
[Insert if any]

2
Note: Following contracts shall not be counted for this purpose
a) The contracts which were invited or accepted before 2078-12-03 B.S or March 17, 2022 A.D
b) The contracts which have been invited after 2078-12-03 B.S i.e March 17, 2022 A.D and accepted but the work acceptance
report has been approved according to Rule 117 of PPR.
c) The contracts that are running under all types of foreign assistance

26
 SECTION - IV

Bidding Forms
This Section contains the forms which are to be completed by the Bidder and submitted as part of its Bid.

27
 Letter of Bid

The Bidder must accomplish the Letter of Bid in its letterhead clearly showing the Bidder’s
complete name and address.

Date: .........................................................

Name of the contract: .........................................................

Invitation for Bid No.: .......................................................

To: ……………………………………………………………………………………………………….....

We, the undersigned, declare that:

(a) We have examined and have no reservations to the Bidding Documents, including Addenda
issued in accordance with Instructions to Bidders (ITB) Clause 8;

(b) We offer to execute in conformity with the Bidding Documents the following Works:

(c)The total price of our Bid, excluding any discounts offered in item (d) below is: [Insert one of the options
below as appropriate] or when left blank is the Bid Price indicated in the Bill of Quantities

Option 1, in case of single contract: Total price is: [insert the total price of the Bid in words and
figures];

Or
Option 2, in case of multiple lots (contracts): (i) Total price of each lot (contracts): [insert the total
price of each lot in words and figures]; (ii) Total price of subject contract [say Lot1] and Lot2
[another contract] [insert the total price in words and figures]; (iii) Total price of subject contract [say
Lot1]and Lot3 [another contract] [insert the total price in words and figures]; Total price of subject
contract [say Lot1], Lot2 [another contract], Lot3 [another contract], ………………..[insert the total
price in words and figures];

(d) The discounts offered and the methodology for their application for subject contract [single contract]
are:…………………………………………….. [For Bidding Documents not provisioning multiple contracts]

Add following if Bidding Document provisions applicability of multiple contracts

28
 The discounts offered and the methodology for their application for subject contract [say Lot1] and
Lot2 [another contract] are:……………………………………………..

The discounts offered and the methodology for their application for subject contract [say Lot1] and
Lot3 [another contract] are:……………………………………………..

The discounts offered and the methodology for their application for subject contract [say Lot1], Lot2
[another contract] and Lot3 [another contract],……………………,
are:……………………………………………..

[Note:

1. Formulate possible combinations depending upon the number of lots under Bidding Process and
modify accordingly Paragraph (c) and (d)]

(e) Our bid shall be valid for a period of …………………..[insert validity period as specified in ITB 15.1]
days from the date fixed for the bid submission deadline in accordance with the Bidding Documents, and it
shall remain binding upon us and may be accepted at any time before the expiration of that period;

(f)If our bid is accepted, we commit to obtain a performance security in accordance with the
Bidding Document;

(g) Our firm, including any subcontractors or suppliers for any part of the Contract, have nationalities from
eligible countries or any countries [insert the nationality of the Bidder, including that of all parties that
comprise the Bidder if the Bidder is a consortium or association, and the nationality of each Subcontractor
and Supplier];

(h) We, including any subcontractors or suppliers for any part of the contract, do not have any
conflict of interest in accordance with ITB 4.3;

(i) We are not participating, as a Bidder or as a subcontractor, in more than one bid in this bidding process in
accordance with ITB 4.3;

(j) Our firm, its affiliates or subsidiaries, including any Subcontractors or Suppliers for any part of the
contract, has not been declared ineligible, under the Employer’s country laws or official regulations or by
an act of compliance with a decision of the United Nations Security Council;

(k) We are not a government owned entity/We are a government owned entity but meet the requirements
of ITB 4.5;1

(l) We understand that this bid, together with your written acceptance thereof included in your notification
of award, shall constitute a binding contract between us, until a formal contract is prepared and executed;

(m) We declare that, we have not been black listed as per ITB 3.4 and no conflict of interest in the proposed
procurement proceedings and we have not been punished for an offense relating to the concerned
profession or business.

29
(n) We declare that we have not running contracts more than five (5)3 in accordance with ITB 4.8.

(o) We understand that you are not bound to accept the lowest evaluated bid or any other bid that you may
receive; and

(p) If awarded the contract, the person named below shall act as Contractor’s Representative:

(q) We agree to permit the Employer/DP or its representative to inspect our accounts and records and other
documents relating to the bid submission and to have them audited by auditors appointed by the Employer.

Name: .................................................................................................

In the capacity of .............................................................................

Signed …………………………………………………………...

Duly authorized to sign the Bid for and on behalf of …………

Date …………………………………………………………....

3
Note: Following contracts shall not be counted for this purpose
a) The contracts which were invited or accepted before 2078-12-03 B.S or March 17, 2022 A.D
b) The contracts which have been invited after 2078-12-03 B.S i.e March 17, 2022 A.D and accepted but the work acceptance
report has been approved according to Rule 117 of PPR.
c) The contracts that are running under all types of foreign assistance

30
 Bid Security
Bank Guarantee
Bank’s Name, and Address of Issuing Branch or Office
(On letterhead paper of the Bank)

Beneficiary: .............................. name and address of Employer ……………………………………….

Date: ……………………………………………………………………………………………………...
Bid Security No.: ..........................................................................................................................................

We have been informed that . …………. .[insert name of the Bidder] (hereinafter called “the Bidder”)
intends to submit its bid (hereinafter called “the Bid”) to you for the execution of …………... name of
Contract . …………… under Invitation for Bids No. ……………… (“the IFB”).

Furthermore, we understand that, according to your conditions, bids must be supported by a bid guarantee.
At the request of the Bidder, we…………………. . name of Bank. ……………….. hereby irrevocably
undertake to pay you any sum or sums not exceeding in total an amount of . . ………...amount in figures
………………………. (. ………….. .amount in words ……………….) upon receipt by us of your first
demand in writing accompanied by a written statement stating that the Bidder is in breach of its obligation(s)
under the bid conditions, because the Bidder:
(a) has withdrawn or modifies its Bid:
(i) during the period of bid validity specified by the Bidder on the Letter Bid, in case of electronic
submission
(ii) from the period twenty-four hours prior to bid submission deadline up to the period of bid validity
specified by the Bidder on the Letter of Bid, in case of hard copy submission; or
(b) does not accept the correction of errors in accordance with the Instructions to Bidders
(hereinafter “the ITB”); or
(c) having been notified of the acceptance of its Bid by the Employer during the period of bid validity, (i)
fails or refuses to execute the Contract Agreement, or (ii) fails or refuses to furnish the performance
security, in accordance with the ITB.
(d) is involved in fraud and corruption in accordance with the ITB
This guarantee will remain in force up to and including the date ………number…………days after the
deadline for submission of Bids as such deadline is stated in the instructions to Bidders or as it may be extended
by the Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this
guarantee should reach the Bank not letter than the above date.
This Bank guarantee shall not be withdrawn or released merely upon return of the original guarantee by the
Bidder unless notified by you for the release of the guarantee.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.

. . .Bank’s seal and authorized signature(s) . . .

Note:
The bid security of ………..……………. has been counter guaranteed by the Bank ……..………... ...…… on
…………......……..………. (Applicable for Bid Security of Foreign Banks).

31
 Bidder’s Information Format

Site Organization

Method Statement

Mobilization Schedule

Construction Schedule

Others

32
 Bidder’s Information

Form ELI - 1: Bidder’s Information Sheet

Bidder's Information

Bidder's legal name

In case of JV, legal name of each partner

Bidder's country of constitution

Bidder's year of constitution

Bidder's legal address in country of constitution

Bidder's authorized representative (name,

address, telephone numbers, fax numbers, e-

mail address)

Attached are copies of the following original documents.

1. In case of single entity, articles of incorporation or constitution of the legal entity named above, in
accordance with ITB 4.1 and 4.2.
2. Authorization to represent the firm or JV named in above, in accordance with ITB 17.2.

3. In case of JV, letter of intent to form JV or JV agreement, in accordance with ITB 4.1.

4. In case of a government-owned entity, any additional documents not covered under 1 above required to
comply with ITB 4.5.

33
Form ELI - 2: JV Information Sheet

Each member of a JV must fill in this form

JV / Specialist Subcontractor Information

Bidder's legal name

JV Partner's or Subcontractor's legal name

JV Partner's or

Subcontractor's country of constitution

JV Partner's or

Subcontractor's year of constitution

JV Partner's or

Subcontractor's legal address in country of

constitution

JV Partner's or

Subcontractor's authorized representative

information (name, address, telephone

numbers, fax numbers, e-mail address)

Attached are copies of the following original documents.

1. articles of incorporation or constitution of the legal entity named above, in accordance with ITB
4.1 and 4.2.
2. Authorization to represent the firm named above, in accordance with ITB .2.
3. In the case of government-owned entity, documents establishing legal and financial autonomy and
compliance with commercial law, in accordance with ITB 4.5.

34
Form ELI - 3: Bidder’s Running Contracts****
Each member of a JV must fill in this form

Bidder’s Running Contracts

Contract Source of Date of issuance Status of

Name of Date of Issuance of
Identification Fund* of Letter of contract**
Taking Over
office
no. Acceptance Certificate***

* Mention GON funded or DP funded or Other PE (Insert name) funded

** Mention "Yet to sign" if contract is not signed, "Running" if contract has been signed and contract is running and
"Substantially completed" if taking over certificate has been issued.

*** Insert date of issuance of taking over certificate if the awarded contract has been substantially completed and taking
over certificate has been issued.
****Note: Following contracts shall not be counted for this purpose
a) The contracts which were invited or accepted before 2078-12-03 B.S or March 17, 2022 A.D
b) The contracts which have been invited after 2078-12-03 B.S i.e March 17, 2022 A.D and accepted but the work acceptance
report has been approved according to Rule 117 of PPR.
c) The contracts that are running under all types of foreign assistance

35
 Part – II

EMPLOYER’S
REQUIREMENTS

36
 Table of Clauses

Works Requirements ...................................................................................................................................... 41

Scope of Work ………………………………………………………………………………………….. 41

Specifications ……………………………………………………………………………………............ 42
Bill of Quantities .............................................................................................................................................. 51

37
 SECTION - V
Works Requirements

This Section contains the Specification, the Drawings, and supplementary information that describe
the Works to be procured.

Scope of Work
Construction of Ganesh Mavi Building at ward no- 2 , Ward no 02, Budhanilkantha
Municipality.

38
 Specifications
As per Standard Specification for Building by DUDBC

39
Bill of Quantities

[insert Bill of Quantities]

40
CONDITIONS OF CONTRACT AND CONTRACT
FORMS

41
Table of Clauses
General ..................................................................................................................................... 46
1. Definitions ........................................................................................................................... 46
2. Interpretation ........................................................................................................................ 47
3. Language and Law ................................................................................................................ 48
4.Contract Agreement ............................................................................................................... 48
5. Assignment .......................................................................................................................... 48
6. Care and Supply of Documents ............................................................................................... 49
7. Confidential Details............................................................................................................... 49
8. Compliance with Laws .......................................................................................................... 49
9. Joint and Several Liability ...................................................................................................... 49
10. Project Manager's Decisions ................................................................................................. 49
11. Delegation .......................................................................................................................... 49
12. Communications ................................................................................................................. 50
13. Subcontracting .................................................................................................................... 50
14. Other Contractors ................................................................................................................ 50
15 Personnel and Equipment ...................................................................................................... 50
16. Employer’s and Contractor's Risk .......................................................................................... 50
17. Employer’s Risks ............................................................................................................... 50
18. Contractor’s Risks .............................................................................................................. 51
19. Insurance .......................................................................................................................... 51
20. Site Investigation Reports .................................................................................................... 51
21. Contractor to Construct the Works ......................................................................................... 51
22. The Works to Be Completed within intended Completion Date ................................................ 52
23. Design by contractor and Approval by the Project Manager ...................................................... 52
24. Safety, Security and Protection of the Environment ................................................................. 52
25. Discoveries ........................................................................................................................ 53
26. Possession of the Site .......................................................................................................... 53
27. Access to the Site ............................................................................................................... 53
28.Instructions, Inspections and Audits........................................................................................ 53
29. Dispute Settlement.............................................................................................................. 53
30. Procedures for Disputes ....................................................................................................... 53
B. Staff and Labor .................................................................................................................... 53
31. Forced Labor ...................................................................................................................... 53
32. Child Labor ........................................................................................................................ 54
33.Non-discrimination and Equal Opportunity ............................................................................. 54
Time Control ............................................................................................................................ 54
34. Program ............................................................................................................................ 54
35. Extension of the Intended Completion Date ............................................................................ 54
36. Acceleration ...................................................................................................................... 55
37. Delays Ordered by the Project Manager ................................................................................ 55
38. Management Meetings ........................................................................................................ 55
39. Early Warning.................................................................................................................... 55
C. Quality Control .................................................................................................................... 55
40. Identifying Defects .............................................................................................................. 55
41. Tests ………………………………………………………………………………………………56

42
 42.Correction of Defects ............................................................................................................ 56
43.Uncorrected Defects ............................................................................................................. 56
D. Cost Control ......................................................................................................................... 56
44. Contract Price .................................................................................................................... 56
45. Changes in the Contract Price ............................................................................................... 56
46. Variations .......................................................................................................................... 56
47.Cash Flow Forecasts ............................................................................................................. 57
48.Payment Certificates ............................................................................................................. 57
49. Payments ........................................................................................................................... 57
50.Compensation Events ........................................................................................................... 58
51. Tax ………………………………………………………………………………………………59
52. Currency ........................................................................................................................... 59
53. Price Adjustment ................................................................................................................ 59
54. Retention ........................................................................................................................... 61
55. Liquidated Damages ............................................................................................................ 61
56. Bonus ................................................................................................................................ 61
57. Advance Payment ................................................................................................................ 61
58. Securities ........................................................................................................................... 62
59. Day works .......................................................................................................................... 62
60. Cost of Repairs................................................................................................................... 62
F. Force Majeure .................................................................................................................... 62
61. Definition of Force Majeure.................................................................................................. 62
62. Notice of Force Majeure ....................................................................................................... 63
63. Duty to Minimize Delay ....................................................................................................... 63
64. Consequences of Force Majeure ............................................................................................ 63
65. Force Majeure Affecting Subcontractor .................................................................................. 64
66.Optional Termination, Payment and Release ............................................................................ 64
67. Release from Performance .................................................................................................... 64
G. Finishing the Contract........................................................................................................ 65
68. Completion ....................................................................................................................... 65
69. Taking Over ...................................................................................................................... 65
70. Final Account .................................................................................................................... 65
71. Operating and Maintenance Manuals ..................................................................................... 66
72. Termination ....................................................................................................................... 66
73.Fraud and Corruption ............................................................................................................ 67
74. Black Listing ..................................................................................................................... 67
75. Payment upon Termination ................................................................................................... 68
76. Property ............................................................................................................................ 68
77.Release from Performance ..................................................................................................... 68
78. Suspension of DP Loan/Credit/Grant ..................................................................................... 68
79. Eligibility ........................................................................................................................... 68
80.ProjectManager’s Duties and Authorities ................................................................................ 69
81.Quarries and Spoil Dumps .................................................................................................... 69
82. Local Taxation ................................................................................................................... 69
83. Value Added Tax ............................................................................................................... 69
84. Income Taxes on Staff ........................................................................................................ 69
85. Duties, Taxes and Royalties ................................................................................................. 69
86. Member of Government, etc, not Personally Liable ................................................................ 70

43
87. Approval of Use of Explosives ............................................................................................. 70
89. Permission for Blasting ....................................................................................................... 70
90.Records of Explosives .......................................................................................................... 70
91. Traffic Diversion ................................................................................................................. 70

44
Section VII: General Conditions of Contract

45
 General Conditions of Contract
This Section provides the General Conditions of Contract that will apply to the Contract for which the
Biding document is issued.
General
1. Definitions 1.1 Boldface type is used to identify defined terms.
(a) The Accepted Contract Amount means the amount accepted in the Letter of
Acceptance for the execution and completion of the Works and the remedying of
any defects.
(b) The Activity Schedule is a schedule of the activities comprising the
construction, installation, testing, and commissioning of the Works in a lump sum
contract. It includes a lump sum price for each activity, which is used for valuations
and for assessing the effects of Variations and Compensation Events.
(c) Bill of Quantities means the priced and completed Bill of Quantities forming part
of the Bid.
(d) Compensation Events are those defined in GCC 50 hereunder.
(e) The Completion Date is the date of completion of the Works as certified by
the Project Manager, in accordance with GCC 68.1.
(f) The Contract is the Contract between the Employer and the Contractor to execute,
complete, and maintain the Works. It consists of the documents listed in GCC 2.3 below.
(g)The Contractor is the party whose Bid to carry out the Works has been accepted
by the Employer.
(h)The Contractor’s Bid is the completed bidding document submitted by the
Contractor to the Employer.
(i)The Contract Price is the Accepted Contract Amount stated in the Letter of
Acceptance and thereafter as adjusted in accordance with the Contract.
(j) Days are calendar days; months are calendar-months.
(k) Dayworks are varied work inputs subject to payment on a time basis for the
Contractor’s employees and Equipment, in addition to payments for associated
Materials and Plant.
(l) A Defect is any part of the Works not completed in accordance with the
Contract.
(m) The Defects Liability Certificate is the certificate issued by Project Manager
upon correction of defects by the Contractor.
(n) The Defects Liability Period is the period calculated from the Completion Date
where the Contractor remains responsible for remedying defects.
(o) Drawings include calculations and other information provided or approved
by the Project Manager for the execution of the Contract.
(p) The Employer is the party who employs the Contractor to carry out the Works, as
specified in the SCC.
(q) Equipment is the Contractor’s machinery and vehicles brought temporarily to the
Site to construct the Works.
(r) Force Majeure means an exceptional event or circumstance: which is beyond a Party's
control; which such Party could not reasonably have provided against before entering
into the Contract; which, having arisen, such Party could not reasonably have avoided
46
 or overcome; and, which is not substantially attributable to the other Party.
(s) The Initial Contract Price is the Contract Price listed in the Employer’s Letter of
Acceptance.
(t) In writing or written means hand written, type written, printed or electronically
made, and resulting in permanent record.
(u) The Intended Completion Date is the date on which it is intended that the
Contractor shall complete the Works. The Intended Completion Date is specified in
the SCC. The Intended Completion Date may be revised only by the Project Manager
by issuing an extension of time or an acceleration order.
(v) Letter of Acceptance means the formal acceptance by the Employer of the Bid
and denotes the formation of the contract at the date of acceptance.
(w) Materials are all supplies, including consumables, used by the Contractor for
incorporation in the Works.
(x) Party means the Employer or the Contractor, as the context requires.
(y) SCC means Special Conditions of Contract
(aa) Plant is any integral part of the Works that shall have a mechanical, electrical,
chemical, or biological function.
(bb) The Project Manager is the person named in the SCC (or any other competent
person appointed by the Employer and notified to the Contractor, to act in replacement
of the Project Manager) who is responsible for supervising the execution of the Works
and administering the Contract.
(cc) Retention Money means the aggregate of all monies retained by the Employer
pursuant to GCC 54.1.
(dd) Schedules means the document(s) entitled schedules, completed by the Contractor
and submitted with the Letter of Bids, as included in the Contract. Such document may
include the Bill of Quantities, data, lists, and schedules of rates and/or prices.
(ee) The Site is the area defined as such in the SCC
(ff) Site Investigation Reports are those that were included in the bidding documents
and are factual and interpretative reports about the surface and subsurface conditions at
the Site.
(gg) Specification means the Specification of the Works included in the Contract
and any modification or addition made or approved by the Project Manager.
(hh) The Start Date is given in the SCC. It is the latest date when the Contractor
shall commence execution of the Works. It does not necessarily coincide with any of
the Site Possession Dates.
(ii) A Subcontractor is a person or corporate body who has a Contract with the
Contractor to carry out a part of the work in the Contract, which includes work on the
Site.
(jj) Temporary Works are works designed, constructed, installed, and removed by
the Contractor that are needed for construction or installation of the Works.
(kk) A Variation is an instruction given by the Project Manager which varies the Works
(ll) The Works are what the Contract requires the Contractor to construct, install, and
turn over to the Employer, as defined in the SCC.
2. Interpretation
2.1 In interpreting these GCC, singular also means plural, male also means female or neuter,
and the other way around. Headings have no significance. Words have their normal
meaning under the language of the Contract unless specifically defined. The Project

47
 Manager shall provide instructions clarifying queries about these GCC.

2.2 If sectional completion is specified in the SCC, references in the GCC to the Works,
the Completion Date, and the Intended Completion Date apply to any Section of the
Works (other than references to the Completion Date and Intended Completion Date
for the whole of the Works).
2.3 The documents forming the Contract shall be interpreted in the following order of priority:
(a) Contract Agreement,
(b) Letter of Acceptance,
(c) Letters of Bid,
(d) Special Conditions of Contract,
(e) General Conditions of Contract,
(f) Specifications,
(g) Drawings,
(h) Bill of Quantities (or Schedules of Prices for lump sum contracts), and
(i) Any other document listed in the SCC as forming part of the Contract.
3. Language and Law
3.1 The language of the Contract and the law governing the Contract are stated in the SCC.

a. Throughout the execution of the Contract, the Contractor shall comply with the import
of goods and services prohibitions in the Employer’s country when
(a) by an act of compliance with a decision of the United Nations Security Council
taken under Chapter VII of the Charter of the United Nations, the Borrower’s
Country prohibits any import of goods from, or any payments to, a particular
country, person, or entity. Where the borrower’s country prohibits payments to a
particular firm or for particular goods by such an act of compliance, that firm may
be excluded.
4.Contract
4.1 The Parties shall enter into a Contract Agreement within 15 days after the Contractor
Agreement receives the Letter of Acceptance, unless the Special Conditions establish otherwise.
The Contract Agreement shall be based upon the attached Contract forms in Section
IX.
5. Assignment
5.1 Neither Party shall assign the whole or any part of the Contract or any benefit or
interest in or under the Contract. However, either Party
(a) may assign the whole or any part with the prior agreement of the other Party,
at the sole discretion of such other Party; and
(b) may, as security in favor of a bank or financial institution, assign its right to
any moneys due, or to become due, under the Contract.

6.1 The Specification and Drawings shall be in the custody and care of the Employer.
Unless otherwise stated in the Contract, one copy of the Contract and of each

48
6. Care and Supply of subsequent Drawing shall be supplied to the Contractor, who may make or request
Documents further copies at the cost of the Contractor.

6.2 Each of the Contractor’s Documents shall be in the custody and care of the Contractor,
unless and until taken over by the Employer. Unless otherwise stated in the Contract,
the Contractor shall supply to the Engineer six copies of each of the Contractor’s
Documents.

6.3 The Contractor shall keep, on the Site, a copy of the Contract, publications named in the
Specification, the Contractor’s Documents (if any), the Drawings and Variations and
other communications given under the Contract. The Employer’s Personnel shall have
the right of access to all these documents at all reasonable times.
6.4 If a Party becomes aware of an error or defect in a document which was prepared for
use in executing the Works, the Party shall promptly give notice to the other Party of
such error or defect.
7. Confidential
7.1 The Contractor’s and the Employer’s Personnel shall disclose all such confidential and
Details other information as may be reasonably required in order to verify the Contractor’s
compliance with the Contract and allow its proper implementation.

7.2 Each of them shall treat the details of the Contract as private and confidential, except to
the extent necessary to carry out their respective obligations under the Contract or to
comply with applicable Laws. Each of them shall not publish or disclose any particulars
of the Works prepared by the other Party without the previous agreement of the other
Party. However, the Contractor shall be permitted to disclose any publicly available
information, or information otherwise required to establish his qualifications to
compete for other projects.

7.3 Notwithstanding the above, the Contractor may furnish to its Subcontractor(s) such
documents, data and other information it receives from the Employer to the extent
required for the Subcontractor(s) to perform its work under the Contract, in which event
the Contractor shall obtain from such Subcontractor(s) an undertaking of confidentiality
similar to that imposed on the Contractor under this Clause.
8. Compliance with
8.1 The Contractor shall, in performing the Contract, comply with applicable Laws.
Laws

9. Joint and Several

9.1 If the Contractor is a joint venture of two or more entities , all such entities shall be
Liability jointly and severally liable to the Employer for the fulfillment of the provisions of the
Contract, and shall designate one of such persons to act as a leader with authority to
bind the joint venture. The contractor shall not handover the responsibility of the
contract to any one member or some members of Joint Venture or any other
parties, not involved in the contract. The composition or the constitution of the joint
venture shall not be altered without the prior consent of the Employer.
10. Project Manager's
10.1 Except where otherwise specifically stated, the Project Manager shall decide contractual
Decisions matters between the Employer and the Contractor in the role representing the Employer.
11. Delegation
11.1 The Project Manager may delegate any of his duties and responsibilities to other people

49
 after notifying the Contractor, and may cancel any delegation after notifying the
Contractor.
12. Communications
12.1 Communications between parties that are referred to in the Conditions shall be effective
only when in writing. A notice shall be effective only when it is delivered.
13. Subcontracting
13.1 A list of approved Subcontractors including its value/works is included as Article 2 (k) of
contract Agreement. Approval by the Employer for any of the Subcontractors shall not
relieve the Contractor from any of its obligations, duties, or responsibilities under the
contract.
14. Other Contractors
14.1 The Contractor shall cooperate and share the Site with other contractors, public
authorities, utilities, and the Employer between the dates given in the Schedule of Other
Contractors, as referred to in the SCC. The Contractor shall also provide facilities
and services for them as described in the Schedule. The Employer may modify the
Schedule of Other Contractors, and shall notify the Contractor of any such modification
15 Personnel and
15.1 The Contractor shall employ the key personnel and use the equipment identified in its
Equipment
Bid to carry out the Works, or other personnel and equipment approved by the Project
Manager. The Project Manager shall approve any proposed replacement of key personnel
and equipment only if their relevant qualifications or characteristics are substantially
equal to or better than those proposed in the Bid.
15.2 If the Project Manager asks the Contractor to remove a person who is a member of the
Contractor’s staff or work force, stating the reasons, the Contractor shall ensure that the
person leaves the Site within seven days and has no further connection with the work in
the Contract.
15.3 If the Employer, Project Manager, or Contractor determines, that any employee of the
Contractor be determined to have engaged in corrupt, fraudulent, collusive, coercive,
or other prohibited practices during the execution of the Works, then that employee
shall be removed in accordance with Clause 15.2 above.
16. Employer’s and
16.1 The Employer carries the risks which this Contract states are Employer’s risks, and the
Contractor's Risk Contractor carries the risks which this Contract states are Contractor’s risks.
17. Employer’s
17.1 From the Start Date until the Defects Liability Certificate has been issued, the following
Risks are Employer’s risks:
(a) The risk of personal injury, death, or loss of or damage
to property (excluding the Works, Plant, Materials, and Equipment), which are due to
(i) use or occupation of the Site by the Works or for the purpose of the Works,
which is the unavoidable result of the Works or
(ii) negligence, breach of statutory duty, or interference with any legal right
by the Employer or by any person employed by or contracted to him except
the Contractor.
(b) The risk of damage to the Works, Plant, Materials, and Equipment to the extent
that it is due to a fault of the Employer or in the Employer’s design, or due to
war or radioactive contamination directly affecting the country where the Works

50
 are to be executed.
17.2 From the Completion Date until the Defects Liability Certificate has been issued, the risk
of loss of or damage to the Works, Plant, and Materials is an Employer’s risk except loss
or damage due to
(a) a Defect which existed on the Completion Date,
(b) an event occurring before the Completion Date, which was not itself an Employer’s
risk, or
(c) the activities of the Contractor on the Site after the Completion Date.
18. Contractor’s
18.1 From the Starting Date until the Defects Liability Certificate has been issued, the risks of
Risks personal injury, death, and loss of or damage to property (including, without limitation, the
Works, Plant, Materials, and Equipment) which are not Employer’s risks are Contractor’s
risks.
19. Insurance
19.1 The Contractor shall provide insurance in the joint names of the Employer and the
Contractor from the Start Date to the end of the Defects Liability Period, in the amounts
and deductibles stated in the SCC for the following events which are due to the
Contractor’s risks:
(a) loss of or damage to the Works, Plant, and Materials;
(b) loss of or damage to Equipment;
(c) loss of or damage to property (except the Works, Plant, Materials, and Equipment)
in connection with the Contract; and
(d) Personal injury or death.

19.2 Policies and certificates for insurance shall be delivered by the Contractor to the Project
Manager for the Project Manager’s approval before the Start Date. All such insurance
shall provide for compensation to be payable in the proportions of Nepalese Rupees
required to rectify the loss or damage incurred.
19.3 If the Contractor does not provide any of the policies and certificates required,
the Employer may affect the insurance which the Contractor should have provided
and recover the premiums the Employer has paid from payments otherwise due to the
Contractor or, if no payment is due, the payment of the premiums shall be a debt due.
19.4 Alterations to the terms of insurance shall not be made without the approval of the
Project Manager.
19.5 Both parties shall comply with any conditions of the insurance policies.
20. Site Investigation
20.1 The Contractor, in preparing the Bid, shall rely on any Site Investigation Reports
Reports referred to in the SCC, supplemented by any information available to the Contractor.
21. Contractor to
21.1 The Contractor shall construct and install the Works in accordance with the Specifications
Construct the Works and Drawings.

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22. The Works to Be
22.1 The Contractor may commence execution of the Works on the Start Date and shall
Completed within carry out the Works in accordance with the Program submitted by the Contractor,
intended Completion as updated with the approval of the Project Manager, and complete them within the
Date intended Completion Date.

23. Design by
23.1 The contractor shall be responsible for the design of permanent works as specified in
contractor and SCC.
Approval by the
23.2 Contractor shall be responsible for design of the Temporary Works. The Contractor shall
Project Manager
submit Specifications and Drawings showing the proposed Temporary Works to the
Project Manager, for his approval.
23.3 All Drawings prepared by the Contractor for the execution of the temporary or
permanent Works, shall be subject to prior approval by the Project Manager before their
use.
23.4 The Project Manager’s approval shall not alter the Contractor’s responsibility for design
of temporary works.
24. Safety, Security
24.1 The Contractor shall, throughout the execution, and completion of the works and
and Protection of the remedying of any defects therein:
Environment
a. Have full regard for the safety of all persons entitled to be upon the site and keep the
site (so as the same is under his control) and the works (so far as the same are not
completed or occupied by the Employer) in an orderly state appropriate to the
avoidance of danger to such persons.
b. Provide and maintain at his own cost all lights, guards, fencing, warning signs and
watching, when necessary or required by the Project Manager or by any duly
constituted authority, for the protection of the Works of for the safety and
convenience of the public or others.
c. Take all reasonable steps to protect the environment on and off the site and to avoid
damage or nuisance to persons
or to property of the public or others resulting from pollution, noise or other causes
arising as a consequence of his methods of operation.
d. Ensure that any cut or fill slopes are planted in grass or other plant cover as soon as
possible to protect them from erosion.
e. Any spoil or material removed from drains shall be disposed of to designated stable
tipping areas as directed by the Project Manager.
f. Shall not use fuel wood as a means of heating during the processing or preparation
of any materials forming part of the works.
g. The Project Manager shall have the power to disallow any working practice or
activity of the Contractor or direct that such practices or activities be modified should
the Project Manager consider, on the advice of the relevant Government
Departments, that the practices or activities will be harmful to wildlife.
h. Provide on the Site such lifesaving apparatus as may be appropriate and an
adequate and easily accessible first aid outfit or such outfits as may be required
by any government ordinance, factory act, etc., subsequently published and

52
 amended from time to time.
25. Discoveries
25.1 Anything of historical or other interest or of significant value unexpectedly discovered
on the Site shall be the property of the employer. The Contractor shall notify the Project
Manager of such discoveries and carry out the Project Manager’s instructions for dealing
with them.
26. Possession of the
26.1 The Employer shall give possession of all parts of the Site to the Contractor. If possession
Site of a part is not given by the date stated in the SCC, the Employer shall be deemed to
have delayed the start of the relevant activities, and this shall be a Compensation Event.

27. Access to the Site

27.1 The Contractor shall allow the Project Manager and any person authorized by the Project
Manager access to the Site and to any place where work in connection with the
Contract is being carried out or is intended to be carried out.
28.Instructions,
28.1 The Contractor shall carry out all instructions of the Project Manager which comply
Inspections and with the applicable laws where the Site is located.
Audits
28.2 The Contractor shall keep, and shall make all reasonable efforts to cause its
Subcontractors and sub consultants to keep accurate and systematic accounts and
records in respect of the Works in such form and details as will clearly identify relevant
time changes and costs.
28.3 The Contractor shall permit the GoN/DP and/or persons appointed by the GoN/DP to
inspect the Site and/or the accounts and records of the Contractor and its sub-contractors
relating to the performance of the Contract, and to have such accounts and records
audited by auditors appointed by the GoN/DP if required by the GoN/DP. The
Contractor’s attention is drawn to Sub-Clause 73.2 which provides, inter alia, that acts
intended to materially impede the exercise of the GoN’s/DP’s inspection and audit rights
provided for under this Sub-Clause constitute a obstructive practice subject to contract
termination.
29. Dispute 29.1 The Employer and the Contractor shall attempt to settle amicably by direct
Settlement negotiation any disagreement or dispute arising between them under or in connection
with the Contract.
29.2 Any dispute between the Parties as to matters arising pursuant to this Contract which
cannot be settled amicably within thirty (30) days after receipt by one Party of the
other Party‘s request for such amicable settlement may be referred to Arbitration
within 30 days after the expiration of amicable settlement period.
30. Procedures for
30.1 In case of arbitration, the arbitration shall be conducted in accordance with procedures
Disputes
in accordance with law of Nepal at the place given in the SCC.
B. Staff and Labor
31. Forced Labor
31.1 The Contractor shall not employ forced labor, which consists of any work or service,
not voluntarily performed, that is exacted from an individual under threat of force or
penalty. This covers any kind of involuntary or compulsory labor, such as indentured
labor, bonded labor, or similar labor–contracting arrangements.

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32. Child Labor
32.1 The Contractor shall not employ children in a manner that is economically exploitative,
or is likely to be hazardous, or to interfere with, the child's education, or to be harmful
to the child's health or physical, mental, spiritual, moral, or social development. Where
national laws have provisions for employment of minors, the Contractor shall follow
those laws applicable to the Contractor. Children below the age of 18 years shall not
be employed in dangerous work.

33.Non-
34.1 The Contractor shall not make employment decisions on the basis of personal
discrimination and characteristics unrelated to inherent job requirements. The Contractor shall base the
Equal Opportunity employment relationship on the principle of equal opportunity and fair treatment, and
shall not discriminate with respect to aspects of the employment relationship,
including recruitment and hiring, compensation (including wages and benefits),
working conditions and terms of employment, access to training, promotion,
termination of employment or retirement, and discipline. In countries where national
law provides for non-discrimination in employment, the Contractor shall comply with
national law. When national laws are silent on nondiscrimination in employment, the
Contractor shall meet this Sub clause's requirements. Special measures of protection
or assistance to remedy past discrimination or selection for a particular job based on
the inherent requirements of the job shall not be deemed discrimination.
Time Control
34. Program
34.1 Within the time stated in the SCC, after the date of the Letter of Acceptance, the
Contractor shall submit to the Project Manager for approval a Program showing the
general methods, arrangements, order, and timing for all the activities in the Works. In the
case of a lump sum contract, the activities in the Program shall be consistent with those
in the Activity Schedule.
34.2 An update of the Program shall be a program showing the actual progress achieved on
each activity and the effect of the progress achieved on the timing of the remaining work,
including any changes to the sequence of the activities.
34.3 The Contractor shall submit to the Project Manager for approval an updated Program at
intervals no longer than the period stated in the SCC. If the Contractor does not submit
an updated Program within this period, the Project Manager may withhold the amount
stated in the SCC from the next payment certificate and continue to withhold this amount
until the next payment after the date on which the overdue Program has been submitted.
In the case of a lump sum contract, the Contractor shall Provide an updated Activity
Schedule within 15 days of being instructed to by the Project Manager.
34.4 The Project Manager’s approval of the Program shall not alter the Contractor’s
obligations. The Contractor may revise the Program and submit it to the Project
Manager again at any time. A revised Program shall show the effect of Variations and
Compensation Events.
35. Extension of the
35.1 The Project Manager shall extend the Intended Completion Date if a Compensation
Intended Completion Event occurs or a Variation is issued which makes it impossible for Completion to
Date be achieved by the Intended Completion Date without the Contractor taking steps to
accelerate the remaining work, which would cause the Contractor to incur additional
cost.

54
 35.2 The Project Manager shall decide whether and by how much to extend the Intended
Completion Date within 21 days of the Contractor asking the Project Manager for a
decision upon the effect of a Compensation Event or Variation and submitting full
supporting information at least 21 days prior to the intended completion date. If the
Contractor has failed to give early warning of a delay or has failed to cooperate in dealing
with a delay, the delay by this failure shall not be considered in assessing the new Intended
Completion Date. Along with full supporting information the contractor shall also submit
Performance Security, Advanced Payment Guarantee and insurance Policy with extended
validity as well as revised work schedule.
36. Acceleration
36.1 When the Employer wants the Contractor to finish before the Intended Completion
Date, the Project Manager shall obtain priced proposals for achieving the necessary
acceleration from the Contractor. If the Employer accepts these proposals, the
Intended Completion Date shall be adjusted accordingly and confirmed by both the
Employer and the Contractor.
36.2 If the Contractor’s priced proposals for acceleration are accepted by the Employer, they
are incorporated in the Contract Price and treated as a Variation.
37. Delays Ordered
37.1 The Project Manager may instruct the Contractor to delay the start or progress of any
by the Project activity within the Works.
Manager

38. Management
38.1 Either the Project Manager or the Contractor may require the other to attend a
Meetings management meeting. The business of a management meeting shall be to review the
plans for remaining work and to deal with matters raised in accordance with the early
warning procedure.
38.2 The Project Manager shall record the business of management meetings and provide
copies of the record to those attending the meeting and to the Employer. The
responsibility of the parties for actions to be taken shall be decided by the Project
Manager either at the management meeting or after the management meeting
and stated in writing to all who attended the meeting.
39. Early Warning
39.1 The Contractor shall warn the Project Manager at the earliest opportunity of specific
likely future events or circumstances that may adversely affect the quality of the
work, increase the Contract Price, or delay the execution of the Works. The Project
Manager may require the Contractor to provide an estimate of the expected effect of
the future event or circumstance on the Contract Price and Completion Date. The
estimate shall be provided by the Contractor as soon as reasonably possible.
39.2 The Contractor shall cooperate with the Project Manager in making and considering
proposals for how the effect of such an event or circumstance can be avoided or
reduced by anyone involved in the work and in carrying out any resulting instruction of
the Project Manager.
C. Quality Control
40. Identifying
40.1 The Project Manager shall check the Contractor’s work and notify the Contractor of any
Defects Defects that are found. Such checking shall not affect the Contractor’s
responsibilities. The Project Manager may instruct the Contractor to search for a Defect
and to uncover and test any work that the Project Manager considers may have a Defect.

55
41. Tests
41.1 If the Project Manager instructs the Contractor to carry out a test not specified in the
Specification to check whether any work has a Defect and the test shows that it does, the
Contractor shall pay for the test and any samples. If there is no Defect, the test shall be a
Compensation Event.
42.Correction of
42.1 The Project Manager shall give notice to the Contractor of any Defects before the end
Defects of the Defects Liability Period, which begins at issuance of taking over certificate
pursuant to clause 69.2, and is defined in the SCC. The Defects Liability Period shall be
extended for as long as Defects remain to be corrected.
42.2 Every time notice of a Defect is given, the Contractor shall correct the notified Defect
within the length of time specified by the Project Manager’s notice.
43.Uncorrected
43.1 If the Contractor has not corrected a Defect within the time specified in the Project
Defects Manager’s notice, the Project Manager shall assess the cost of having the Defect
corrected, and the Contractor shall pay this amount.
D. Cost Control
44. Contract Price
44.1 In the case of a Unit Rate contract, the Bill of Quantities shall contain priced items
for the Works to be performed by the Contractor. The Bill of Quantities is used to
calculate the Contract Price. The Contractor will be paid for the quantity of the work
accomplished at the rate in the Bill of Quantities for each item.
44.2 In the case of a lump sum contract, the Activity Schedule shall contain the priced activities
for the Works to be performed by the Contractor. The Activity Schedule is used to monitor
and control the performance of activities on which basis the Contractor will be paid.
If payment for Materials on Site shall be made separately, the Contractor shall show
delivery of Materials to the Site separately on the Activity Schedule.
45. Changes in the
45.1 In the case of an Unit Rate contract:
Contract Price
(a) If the final quantity of the work done differs from the quantity in the Bill of
Quantities for the particular item by more than 25 percent, provided the change
exceeds 2 percent of the Initial Contract Price, the Project Manager shall adjust the
rate to allow for the change.
(b) The Project Manager shall not adjust rates from changes in quantities if thereby the
Initial Contract Price is exceeded by more than 10 percent, except with the prior
approval of the Employer.
(c) If requested by the Project Manager, the Contractor shall provide the Project
Manager with a detailed cost breakdown of any rate in the Bill of Quantities.
45.2 In the case of a lump sum contract, the Activity Schedule shall be amended by the
Contractor to accommodate changes of Program or method of working made at the
Contractor’s own discretion. Prices in the Activity Schedule shall not be altered when
the Contractor makes such changes to the Activity Schedule.
46. Variations
46.1 All Variations shall be included in updated Programs, and, in the case of a lump sum
contract, also in the Activity Schedule, produced by the Contractor.

46.2 The Contractor shall provide the Project Manager with a quotation for carrying out
the Variation when requested to do so by the Project Manager. The Project Manager
56
 shall assess the quotation, which shall be given within seven (7) days of the request
or within any longer period stated by the Project Manager and before the Variation is
ordered.
46.3 If the Contractor’s quotation is unreasonable, the Project Manager may order the
Variation and make a change to the Contract Price, which shall be based on the Project
Manager’s own forecast of the effects of the Variation on the Contractor’s costs.
46.4 If the Project Manager decides that the urgency of varying the work would prevent a
quotation being given and considered without delaying the work, no quotation shall be
given and the Variation shall be treated as a Compensation Event.
46.5 The Contractor shall not be entitled to additional payment for costs that could have been
avoided by giving early warning.

46.6 In the case of an Unit Rate contract, if the work in the Variation corresponds to an item
description in the Bill of Quantities and if, in the opinion of the Project Manager, the
quantity of work above the limit stated in GCC 45.1 or the timing of its execution do not
cause the cost per unit of quantity to change, the rate in the Bill of Quantities shall be
used to calculate the value of the Variation. If the cost per unit of quantity changes, or if
the nature or timing of the work in the Variation does not correspond with items in the
Bill of Quantities, the quotation by the Contractor shall be in the form of new rates for
the relevant items of work.
47.Cash Flow
47.1 When the Program, or, in the case of a lump sum contract, the Activity Schedule, is
Forecasts updated, the Contractor shall provide the Project Manager with an updated cash flow
forecast.
48.Payment
48.1 The Contractor shall submit to the Project Manager monthly statements of the estimated
Certificates value of the work executed less the cumulative amount certified previously.
48.2 The Project Manager shall check the Contractor’s monthly statement and certify the
amount to be paid to the Contractor within 30 days of submission by contractor.
48.3 The value of work executed shall be determined by the Project Manager.
48.4 The value of work executed shall comprise:
(a) In the case of an Unit Rate contract, the value of the quantities of work in the
Bill of Quantities that have been completed; or
(b) In the case of a lump sum contract, the value of work executed shall comprise
the value of completed activities in the Activity Schedule.
48.5 The value of work executed shall include the valuation of Variations and Compensation
Events.
48.6 The Project Manager may exclude any item certified in a previous certificate or reduce the
proportion of any item previously certified in any certificate in the light of later
information.
49. Payments
49.1 Payments shall be adjusted for deductions for advance payments and retention. The
Employer shall pay the Contractor the amounts certified by the Project Manager within
30 days of the date of each certificate. If the Employer makes a late payment, the
Contractor shall be paid interest as indicated in the SCC on the late payment in the next
57
 payment. Interest shall be calculated from the date by which the payment should have
been made up to the date when the late payment is made.

49.2 If an amount certified is increased in a later certificate or as a result of an award by

an Arbitrator, the Contractor shall be paid interest upon the delayed payment as set out
in this clause. Interest shall be calculated from the date upon which the increased
amount would have been certified in the absence of dispute.

49.3 Items of the Works for which no rate or price has been entered in BOQ shall not be paid for
by the Employer and shall be deemed covered by other rates and prices in the Contract.
50.Compensation
50.1 The following shall be Compensation Events:
Events
(a) The Employer does not give access to a part of the Site by the Site Possession Date
pursuant to GCC 26.1.
(b) The Employer modifies the Schedule of Other Contractors in a way that affects the
work of the Contractor under the Contract.
(c) The Project Manager orders a delay or does not issue Drawings, Specifications,
or instructions required for execution of the Works on time.
(d) The Project Manager instructs the Contractor to uncover or to carry out additional tests
upon work, which is then found to have no Defects.
(e) The Project Manager unreasonably does not approve a subcontract to be let.
(f) Ground conditions are substantially more adverse than could reasonably have been
assumed before issuance of the Letter of Acceptance from the information issued
to bidders (including the Site Investigation Reports), from information available
publicly and from a visual inspection of the Site.
(g) The Project Manager gives an instruction for dealing with an unforeseen condition,
caused by the Employer, or additional work required for safety or other reasons.
(h) Other contractors, public authorities, utilities, or the Employer does not work
within the dates and other constraints stated in the Contract, and they cause delay
or extra cost to the Contractor.
(i) The advance payment is delayed.
(j) The effects on the Contractor of any of the Employer’s Risks.
(k) The Project Manager unreasonably delays issuing a Certificate of Completion.

50.2 If a Compensation Event would cause additional cost or would prevent the work being
completed before the Intended Completion Date, the Contract Price shall be increased
and/or the Intended Completion Date shall be extended. The Project Manager shall
decide whether and by how much the Contract Price shall be increased and whether
and by how much the Intended Completion Date shall be extended.
50.3 As soon as information demonstrating effect of each Compensation Event upon the
Contractor’s forecast cost has been provided by the Contractor, it shall be assessed by the
Project Manager, and the Contract Price shall be adjusted accordingly. If the Contractor’s
forecast is deemed unreasonable, the Project Manager shall adjust the Contract Price

58
 based on the Project Manager’s own forecast. The Project Manager shall assume that
the Contractor shall react competently and promptly to the event.
50.4 The Contractor shall not be entitled to compensation to the extent that the
Employer’s interests are adversely affected by the Contractor’s not having
given early warning or not having cooperated with the Project Manager.
51. Tax
51.1 The Project Manager shall adjust the Contract Price if taxes, duties, and other levies
are changed between the date 30 days before the submission of bids for the Contract and
the date of the last Completion certificate. The adjustment shall be the change in the
amount of tax payable by the Contractor, provided such changes are not already
reflected in the Contract Price or are a result of GCC 53.
52. Currency
52.1 The currency of Contracts shall be Nepalese Rupees.
53. Price Adjustment 53.1 Prices shall be adjusted for fluctuations in the cost of inputs only if provided for in the
SCC. If so provided, the amounts certified in each payment certificate, before deducting
for Advance Payment, shall be adjusted by applying the respective price adjustment
factor to the payment amounts due.
53.2 Adjustment Formulae4: The formulae will be of the following general type:

𝐿𝑛 𝑀𝑛 𝐸𝑛
𝑝𝑛 = 𝐴 + 𝑏 + 𝑐 + 𝑑 + 𝑒𝑡𝑐.
𝐿𝑜 𝑀𝑜 𝐸𝑜
Where:
pn is a price adjustment factor to be applied to the amount for the payment of the
work carried out in the subject month, determined in accordance with Clause 49;
A is a constant, specified in the Bidding Forms- Table of Price Adjustment data,
representing the nonadjustable portion in contractual payments;5b, c, d, etc.,
coefficients representing the estimated proportion of each cost element (labor,
materials, equipment usage, etc.) in the Works or sections thereof, net of Provisional
Sums, as specified in the SCC;
Ln, Mn, En, etc., are the current cost indices or reference prices of the cost elements for
month “n,” determined pursuant to Sub-Clause 53.4, applicable to each cost element; and
Lo, Mo, Eo, etc., are the base cost indices or reference prices corresponding to the above
cost elements at the date specified in Sub-Clause 53.4

53.3 Sources of Indices and Weightings: The sources of indices shall be those listed
in the Bidding Forms- Table of Price Adjustment data, as approved by the Project
Manager and stated in SCC. Indices shall be appropriate for their purpose and shall
relate to the Contractor’s proposed source of supply of inputs on the basis of which
his Contract shall have been computed. As the proposed basis for price adjustment,

4
For complex Works involving several types of construction work with different inputs, a family of
Formulae will be necessary. The various items of Day work may also require different formulae, depending
on the nature and source of the inputs
5
Insert a figure for factor A only where there is a part of the Contractors’ expenditures which will not be subject to
fluctuation in cost or to compensate for the unreliability of some indices. A should normally be 0.15. The sum of A,
b, c, d, etc., should be one.
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 the Contractor shall have submitted with his bid the tabulation of Weightings and
Source of Indices in the Bidding Forms, which shall be subject to approval by the
Project Manager.
53.4 Base, Current and Provisional Indices: The base cost indices or prices shall be those
prevailing on the day 30 days prior to the latest date for submission of bids. Current
indices or prices shall be those prevailing on the day 30 days prior to the last day of
the period to which a particular Interim Payment Certificate is related. If at any time
the current indices are not available, provisional indices as determined by the Project
Manager will be used, subject to subsequent correction of the amounts paid to the
Contractor when the current indices become available.
53.5 Weightings: The weightings for each of the factors of cost given in the Bidding Forms
shall be adjusted if, in the opinion of the Project Manager, they have been rendered
unreasonable, unbalanced or inapplicable as a result of varied or additional work
already executed or instructed under Clause 46 or for any other reason.

53.6 Where, price adjustment provision is not applicable pursuant to Sub-clause 53.1 then the
Contract is subject to price adjustment only for construction material in accordance
with this clause. If the prices of the construction materials stated in the contract is
increased or decreased in an unexpected manner in excess of ten (10%) percent in
comparison to the base price construction material stated in Section –IV, Bidding
Forms-Table of Price Adjustment Data, then the price adjustment for the increase
or decrease of price of the construction material beyond 10% shall be made by applying
the following formulas:
For unexpected increase in price
P =[R1 -(R0 ×1.10)]× Q
For unexpected decrease in price P
= [R1 -(R0 ×0.90)]× Q
Where:
“P” is price adjustment amount
“R1” is the present price of the construction material (Source of indices shall be those listed
in the Bidding forms)
“R0” is the base price of the construction material
“Q” is quantity of the construction material consumed in construction during the period of
price adjustment consideration If the Base price and source is to be proposed by the Bidder
as per the provision made in Section –IV, Bidding Forms-Table of Price Adjustment
Data then the Base price and source filled by Bidder for the construction material
stated in the Bidding Form shall be subject to the approval of the Project manager
and shall be as stated in SCC..
53.7 The Price Adjustment amount shall be limited to a maximum of the initial Contract Amount
as specified in the SCC.
53.8 The Price Adjustment provision shall not be applicable for delayed period if the
contract is not completed in time due to the delay caused by the contractor or the

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 contract is a Lump sum Contract
54. Retention
54.1 The Employer shall retain from each payment due to the Contractor the proportion stated
in the SCC until Completion of the whole of the Works.
54.2 Upon the issue of a Defects Liability Certificate by the Project Manager, in accordance
with GCC 70.1, half the total amount retained shall be repaid to the Contractor and
half when the Contractor has submitted the evidence of submission of tax return to the
concerned Internal Revenue Office.
54.3 The Contractor may substitute retention money with an unconditional bank guarantee
issued from Commercial Bank or Financial Institution eligible to issue Bank Guarantee as
per prevailing Law if:
(a) at least eighty (80) percent of the whole works have been completed,
(b) progress of the works is satisfactory in accordance with the Contract as per
approved work schedule, and
(c) it can be assured that the works can be completed at the intended completion date.
54.4 If retention money is substituted by bank guarantee in accordance with clause 54.2, the
bank guarantee shall be submitted either using the Retention Money Security Form
included in Section X (Contract Forms) or in another Form acceptable to the employer.
The validity of the bank guarantee shall be at least one month more than the end of defect
liability period.
55. Liquidated
55.1 The Contractor shall pay liquidated damages to the Employer at the rate per day stated in
Damages
the SCC for each day that the Completion Date is later than the Intended Completion Date.
The total amount of liquidated damages shall not exceed the amount defined in the SCC.
The Employer may deduct liquidated damages from payments due to the Contractor.
Payment of liquidated damages shall not affect the Contractor’s liabilities.
55.2 If the Intended Completion Date is extended after liquidated damages have been paid,
the Project Manager shall correct any overpayment of liquidated damages by the
Contractor by adjusting the next payment certificate. The Contractor shall be paid interest
on the overpayment, calculated from the date of payment to the date of repayment, at the
rates specified in GCC.49
56. Bonus
56.1 The Contractor shall be paid a Bonus calculated at the rate per calendar day stated
in the SCC for each day (less any days for which the Contractor is paid for
acceleration) that the Completion is earlier than the Intended Completion Date. The
Project Manager shall certify that the Works are complete, although they may not be due
to be complete.
57. Advance Payment
57.1 The Employer shall make advance payment to the Contractor of the amounts stated
in the SCC in two equal installments by the date stated in the SCC, against
provision by the Contractor of an unconditional bank guarantee from Commercial
Bank or Financial Institution eligible to issue Bank Guarantee as per prevailing Law in
a form acceptable to the Employer in amounts equal to the advance payment. The
guarantee shall remain effective until the advance payment has been repaid, but the
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 amount of the guarantee shall be progressively reduced by the amounts repaid by the
Contractor. Interest shall not be charged on the advance payment.

57.2 The Contractor is to use the advance payment only to pay for Equipment, Plant,
Materials, and mobilization expenses required specifically for execution of the Contract.
The Contractor shall demonstrate that advance payment has been used in this way by
supplying copies of invoices or other documents to the Project Manager.
57.3 The advance payment shall be repaid by deducting proportionate amounts, as stated in
SCC, from payments otherwise due Contractor, following the schedule of completed
percentages of the Works on a payment basis. No account shall be taken of the
advance payment or its repayment in assessing valuations of work done, Variations,
price adjustments, Compensation Events, Bonuses, or Liquidated Damages.
58. Securities
58.1 The Performance Security, including any additional security required as per ITB 32.5
and ITB 37.1, shall be provided to the Employer no later than the date specified in
the Letter of Acceptance and shall be issued in an amount specified in the SCC, by
a Commercial Bank or Financial Institution eligible to issue Bank Guarantee as per
prevailing Law acceptable to the Employer, and denominated in Nepalese Rupees.
The Performance Security shall be valid until a date 30 days from the date of issue of
the Defect Liability Certificate in the case of a bank guarantee.
Any additional performance security required as per ITB 32.5 shall be valid until a date
30 days from the date of issue of the certificate of Completion in the case of a bank
guarantee.
Any additional performance security required as per ITB 37.1 shall be valid until a date
30 days from the date of issue of the certificate of DLP in the case of a bank guarantee.
58.2 The performance security issued by any foreign Bank outside Nepal must be
counter guaranteed by an Commercial Bank or Financial Institution eligible to issue
Bank Guarantee as per prevailing Law in Nepal.
59. Day works
59.1 If applicable, the Day works rates in the Contractor’s Bid shall be used for small
additional amounts of work only when the Project Manager has given written
instructions in advance for additional work to be paid for in that way.
59.2 All work to be paid for as Day works shall be recorded by the Contractor on forms
approved by the Project Manager. Each completed form shall be verified and signed
by the Project Manager within two days of the work being done.
59.3 The Contractor shall be paid for Day works subject to obtaining signed Day works forms.
60. Cost of Repairs
60.1 Loss or damage to the Works or Materials to be incorporated in the Works between the
Start Date and the end of the Defects Correction periods shall be remedied by the
Contractor at the Contractor’s cost if the loss or damage arises from the
Contractor’s acts or omissions.
F. Force Majeure
61. Definition of
61.1 In this Clause, “Force Majeure” means an exceptional event or circumstance,
Force Majeure
(a) which is beyond a Party’s control;

62
 (b) which such Party could not reasonably have provided against before entering
into the Contract;
(c) which, having arisen, such Party could not reasonably have avoided or
overcome; and
(d) which is not substantially attributable to the other Party.

61.2 Force Majeure may include, but is not limited to, exceptional events or circumstances
of the kind listed below, so long as conditions (a) to (d) above are satisfied:
(a) war, hostilities (whether war be declared or not), invasion, act of foreign
enemies;
(b) rebellion, terrorism, sabotage by persons other than the Contractor’s Personnel,
revolution, insurrection, military or usurped power, or civil war;
(c) riot, commotion, disorder, strike or lockout by persons other than the
Contractor’s Personnel;
(d) munitions of war, explosive materials, ionizing radiation or contamination by
radio-activity, except as may be attributable to the Contractor’s use of such
munitions, explosives, radiation or radio-activity; and
(e) natural catastrophes such as earthquake, hurricane, typhoon or volcanic activity.
62. Notice of Force
62.1 If a Party is or will be prevented from performing its substantial obligations under the
Majeure Contract by Force Majeure, then it shall give notice to the other Party of the event or
circumstances constituting the Force Majeure and shall specify the obligations, the
performance of which is or will be prevented. The notice shall be given within 14 days
after the Party became aware, or should have become aware, of the relevant event or
circumstance constituting Force Majeure.

62.2 The Party shall, having given notice, be excused performance of its obligations for so
long as such Force Majeure prevents it from performing them.

62.3 Notwithstanding any other provision of this Clause, Force Majeure shall not apply to
obligations of either Party to make payments to the other Party under the Contract.
63. Duty to Minimize
63.1 Each Party shall at all times use all reasonable endeavors to minimize any delay in the
Delay performance of the Contract as a result of Force Majeure.

63.2 A Party shall give notice to the other Party when it ceases to be affected by the Force
Majeure.
64. Consequences of
64.1 If the Contractor is prevented from performing its substantial obligations under the
Force Majeure Contract by Force Majeure of which notice has been given under GCC 62, and suffers
delay and/or incurs Cost by reason of such Force Majeure, the Contractor shall be
entitled subject to GCC 30 to

63
 (a) an extension of time for any such delay, if completion is or will be delayed,
under GCC35 ; and
(b) if the event or circumstance is of the kind described in sub-paragraphs (a) to (d)
of GCC 61.2 and, in the case of subparagraphs (b) to (d), occurs in the Country,
payment of any such Cost, including the costs of rectifying or replacing the
Works and/or Goods damaged or destructed by Force Majeure, to the extent they
are not indemnified through the insurance policy referred to in GCC 19.

64.2 After receiving this notice, the Project Manager shall proceed in accordance with GCC
10 to agree or determine these matters.
65. Force Majeure
65.1 If any Subcontractor is entitled under any contract or agreement relating to the Works
Affecting to relief from force majeure on terms additional to or broader than those specified in
Subcontractor this Clause, such additional or broader force majeure events or circumstances shall not
excuse the Contractor’s nonperformance or entitle him to relief under this Clause.
66.Optional
66.1 If the execution of substantially all the Works in progress is prevented for a continuous
Termination, period of 90 days by reason of Force Majeure of which notice has been given under
Payment and Release GCC 62, or for multiple periods which total more than 150 days due to the same
notified Force Majeure, then either Party may give to the other Party a notice of
termination of the Contract. In this event, the termination shall take effect 7 days after
the notice is given, and the Contractor shall proceed in accordance with GCC 72.5.

66.2 Upon such termination, the Project Manager shall determine the value of the work done
and issue a Payment Certificate, which shall include
(a) the amounts payable for any work carried out for which a price is stated in the
Contract;
(b) the Cost of Plant and Materials ordered for the Works which have been delivered
to the Contractor, or of which the Contractor is liable to accept delivery: this
Plant and Materials shall become the property of (and be at the risk of) the
Employer when paid for by the Employer, and the Contractor shall place the
same at the Employer’s disposal;
(c) other Costs or liabilities which in the circumstances were reasonably and
necessarily incurred by the Contractor in the expectation of completing the
Works;
(d) the Cost of removal of Temporary Works and Contractor’s Equipment from the
Site and the return of these items to the Contractor’s works in his country (or to
any other destination at no greater cost); and
(e) the Cost of repatriation of the Contractor’s staff and labor employed wholly in
connection with the Works at the date of termination.
67. Release from 67.1 Notwithstanding any other provision of this Clause, if any event or circumstance outside
Performance the control of the Parties (including, but not limited to, Force Majeure) arises, which
makes it impossible or unlawful for either or both Parties to fulfill its or their
contractual obligations or which, under the law governing the Contract, entitles the
64
 Parties to be released from further performance of the Contract, then upon notice by
either Party to the other Party of such event or circumstance,
(a) the Parties shall be discharged from further performance, without prejudice to
the rights of either Party in respect of any previous breach of the Contract; and
(b) the sum payable by the Employer to the Contractor shall be the same as would
have been payable under GCC 66 if the Contract had been terminated under
GCC 66.
G. Finishing the Contract
68. Completion
68.1 The Contractor shall request the Project Manager to issue a certificate of Completion
of the Works, and the Project Manager shall do so upon deciding that the work is
completed.
68.2 In addition to the other provisions, before acceptance of the completed works, Employer
shall verify and assure that such works are within the set objective, quality and
appropriate to operate and use.
69. Taking Over
69.1 In the contractor’s Opinion, if the works are complete and ready for taking over,
the contractor may apply by notice to the Project Manager for a Taking-Over
Certificate. If the Works are divided into Sections, the Contractor may similarly
apply for a Taking-Over Certificate for each Section.
69.2 The Project Manager shall, within 30 days after receiving the Contractor’s
application:
(a) issue the Taking-Over Certificate to the Contractor if physical progress of works
is at least ninety (90) percent in accordance with the Contract except for any minor
outstanding work and defects (as listed in the Taking-Over Certificate) which will
not substantially affect the use of the Works or Section for their intended purpose
(either until or whilst this work is completed and these defects are remedied); or
(b) reject the application, giving reasons and specifying the work required to be done
by the Contractor to enable the Taking-Over Certificate to be issued. The
Contractor shall then complete this work before issuing a further notice under this
Sub-Clause.
69.3 If the Engineer fails either to issue the Taking-Over Certificate or to reject the
Contractor’s application within the period of 30 days, and if the Works or Section
(as the case may be) are substantially completed in accordance with the Contract,
the Taking-Over Certificate shall be deemed to have been issued on the last day
of that period.

70. Final Account

70.1 The Contractor shall supply the Project Manager with a detailed account of the total
amount that the Contractor considers payable under the Contract before the end of the
Defects Liability Period. The Project Manager shall issue a Defects Liability Certificate
and certify any final payment that is due to the Contractor within 60 days of receiving the
Contractor’s account if it is correct and complete. If it is not, the Project Manager
shall issue within 60 days a schedule that states the scope of the corrections or
additions that are necessary. If the Final Account is still unsatisfactory after it has
been resubmitted, the Project Manager shall decide on the amount payable to the
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 Contractor and issue a payment certificate.
71. Operating and
71.1 If “as built” Drawings and/or operating and maintenance manuals are required, the
Maintenance Contractor shall supply them by the dates stated in the SCC.
Manuals
71.2 If the Contractor does not supply the Drawings and/or manuals by the dates stated in the
SCC pursuant to GCC 71.1, or they do not receive the Project Manager’s approval, the
Project Manager shall withhold the amount stated in the SCC from payments due to
the Contractor.
72. Termination
72.1 The Employer may terminate the Contract at any time if the contractor;
a. does not commence the work as per the Contract,
b. abandons the work without completing,
c. fails to achieve progress as per the Contract.
72.2 The Employer or the Contractor may terminate the Contract if the other party causes a
fundamental breach of the Contract.
72.3 Fundamental breaches of Contract shall include, but shall not be limited to, the following
:
(a) The Contractor uses the advance payment for matters other than the contractual
obligations,
(b) the Contractor stops work for 30 days when no stoppage of work is shown on the current
Program and the stoppage has not been authorized by the Project Manager;
(c) the Project Manager instructs the Contractor to delay the progress of the Works, and the
instruction is not withdrawn within 30 days;
(d) the Employer or the Contractor is made bankrupt or goes into liquidation other
than for a reconstruction or amalgamation.
(e) a payment certified by the Project Manager is not paid by the Employer to the Contractor
within 90 days of the date of the Project Manager’s certificate;
(f) the Project Manager gives Notice that failure to correct a particular Defect is a
fundamental breach of Contract and the Contractor fails to correct it within a reasonable
period of time determined by the Project Manager;
(g) the Project Manager gives two consecutive Notices to update the Program and
accelerate the works to ensure compliance with GCC Sub clause 22.1 and the
Contractor fails to update the Program and demonstrate acceleration of the works
within a reasonable period of time determined by the Project Manager;
(h) the Contractor does not maintain a Security, which is required;
(i) the Contractor has delayed the completion of the Works by the number of days for which
the maximum amount of liquidated damages can be paid, as defined in the SCC; and
(j) If the Contractor, in the judgment of the Employer has engaged in corrupt or
fraudulent practices in competing for or in executing the Contract, pursuant to GCC 73.1.
72.4 When either party to the Contract gives notice of a breach of Contract to the Project
Manager for a cause other than those listed under GCC 72.3 above, the Project Manager
shall decide whether the breach is fundamental or not.
72.5 Notwithstanding the above, the Employer may terminate the Contract for convenience.

66
 72.6 If the Contract is terminated, the Contractor shall stop work immediately, make the
Site safe and secure, and leave the Site as soon as reasonably possible.
73.Fraud and
73.1 If the Employer determines that the Contractor has engaged in corrupt, fraudulent,
Corruption collusive, coercive or obstructive practices, in competing for or in executing the Contract,
then the Employer may, after giving 15 days’ notice to the Contractor, terminate the
Contractor's employment under the Contract and expel him from the Site.
73.2 Should any employee of the Contractor be determined to have engaged in corrupt,
fraudulent, collusive, coercive, or obstructive practice during the execution of the Works,
then that employee shall be removed in accordance with GCC Clause 15.
For the purposes of this GCC 73;
(i) “corrupt practice” is the offering, giving, receiving or soliciting, directly or
indirectly, of anything of value to influence improperly the actions of another party.
(ii) “fraudulent practice”5 is any act or omission, including a misrepresentation, that
knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial
or other benefit or to avoid an obligation;
(iii) “collusive practice”6 is an arrangement between two or more parties designed
to achieve an improper purpose, including to influence improperly the actions
of another party;
(iv) “coercive practice”7 is impairing or harming, or threatening to impair or harm,
directly or indirectly, any party or the property of the party to influence improperly
the actions of a party;
(v) “obstructive practice” is
(aa) deliberately destroying, falsifying, altering or concealing of evidence
material to the investigation or making false statements to investigators in
order to materially impede a investigation into allegations of a corrupt,
fraudulent, coercive or collusive practice;
and/or threatening, harassing or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the investigation or from
pursuing the investigation; or
(bb) acts intended to materially impede the exercise of the GON’s/DP’s inspection
and audit rights provided for under GCC28.3.
74. Black Listing
74.1 Without prejudice to any other rights of the Employer under this Contract,
GoN, Public Procurement Monitoring Office (PPMO), on the
recommendation of procuring entity, may blacklist a Bidder for its conduct
for a period of one (1) to three (3) years on the following grounds and
seriousness of the act committed by the bidder:
(a) if it is established that the Contractor has committed substantial defect in
implementation of the contract or has not substantially fulfilled its obligations
under the contract or the completed work is not of the specified quality as per
the contract.
(b) If convicted from a court of law in a criminal offense liable to be disqualified
for taking part in procurement contract,

67
 (c) If it is established that the Contractor has engaged in corrupt or fraudulent
practices in competing for or in executing the Contract.
75. Payment upon
75.1 If the Contract is terminated because of a fundamental breach of Contract by the
Termination Contractor, the Project Manager shall issue a certificate for the value of the work done
and Materials ordered less advance payments received up to the date of the issue of
the certificate. Additional Liquidated Damages shall not apply. If the total amount due
to the Employer exceeds any payment due to the Contractor, the difference shall be a
debt payable to the Employer.
75.2 If the Contract is terminated for the Employer’s convenience or because of a fundamental
breach of Contract by the Employer, the Project Manager shall issue a certificate for the
value of the work done, Materials ordered, the reasonable cost of removal of Equipment,
repatriation of the Contractor’s personnel employed solely on the Works, and the
Contractor’s costs of protecting and securing the Works, and less advance payments
received up to the date of the certificate.

75.3 If the Contract is terminated because of fundamental breach of Contract or for any other
fault by the Contractor, the performance security shall be forfeited by the Employer.
In such case, amount to complete the remaining works as per the Contract shall be
recovered from the Contractor as Government dues.
76. Property
76.1 All Materials on the Site, Plant, Equipment, Temporary Works, and Works shall be
deemed to be the property of the Employer if the Contract is terminated because of the
Contractor’s default.
77.Release from
77.1 If the Contract is frustrated by the outbreak of war or by any other event entirely outside
Performance the control of either the Employer or the Contractor, the Project Manager shall certify that
the Contract has been frustrated. The Contractor shall make the Site safe and stop work
as quickly as possible after receiving this certificate and shall be paid for all work carried
out before receiving it and for any work carried out afterwards to which a commitment
was made.
78. Suspension of DP
78.1 In the event that the DP suspends the loan/ credit/grant to the Employer from which part
Loan/Credit/Grant of the payments to the Contractor are being made:
a. the Employer is obligated to notify the Contractor of such suspension within 7
days of having received the DP's suspension notice; and
b. if the Contractor has not received sums due him within the 30 days for payment
provided for in GCC 49.1, the Contractor may immediately issue a 15-day
termination notice.
79. Eligibility
79.1 The Contractor shall have the nationality of an eligible country as specified in Section
V of the bidding document. The Contractor shall be deemed to have the nationality of
a country if the Contractor is a citizen or is constituted, or incorporated, and operates
in conformity with the provisions of the laws of that country. This criterion shall also
apply to the determination of the nationality of proposed subcontractors or suppliers
for any part of the Contract including related services.

79.2 The materials, equipment, and services to be supplied under the Contract shall have
their origin in eligible source countries as specified in Section V of the bidding
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 document and all expenditures under the Contract will be limited to such materials,
equipment, and services. At the Employer’s request, the Contractor may be required
to provide evidence of the origin of materials, equipment, and services.

79.3 For purposes of GCC 79.2, “origin” means the place where the materials and
equipment are mined, grown, produced, or manufactured, and from which the services
are provided. Materials and equipment are produced when, through manufacturing,
processing, or substantial or major assembling of components, a commercially
recognized product results that differs substantially in its basic characteristics or in
purpose or utility from its components.
80.ProjectManager’s
80.1 The Project Manager’s duties and authorities are restricted to the extent as stated in
Duties and the SCC.
Authorities

81.Quarries and
81.1 Any quarry operated as part of this Contract shall be maintained and left in a stable
Spoil Dumps condition without steep slopes and be either refilled or drained and be landscaped by
appropriate planting. Rock or gravel taken from a river shall be removed over some
distance so as to limit the depth of material removed at any one location, not disrupt the
river flow or damage or undermine the river banks. The Contractor shall not deposit
excavated material on land in Government or private ownership except as directed
by the Project Manager in writing or by permission in writing of the authority
responsible for such land in Government ownership, or of the owner or responsible
representative of the owner of such land in private ownership, and only then in those
places and under such conditions as the authority, owner or responsible representative
may prescribe.
82. Local Taxation
82.1 The prices bid by the Contractor shall include all taxes that may be levied in accordance
to the laws and regulations in being in Nepal on the date 30 days prior to the closing
date for submissions of Bids on the Contractor’s equipment, plant and materials
acquired for the purpose of the Contract and on the services performed under the
Contract. Nothing in the Contract shall relieve the Contractor from his responsibility to
pay any tax that may be levied in Nepal on profits made by him in respect of the
Contract.
83. Value Added Tax
83.1 The Contract is not exempted from value added tax. An amount specified in the
schedule of taxes shall be paid by the Contractor in the concerned VAT office within
time frame specified in VAT regulation.
84. Income Taxes on
84.1 The Contractor’s staff, personnel and labor will be liable to pay personal income
Staff taxes in Nepal in respect of their salaries and wages, as are chargeable under the laws
and regulations for the time being in force, and the Contractor shall perform such duties
in regard to such deductions as may be imposed on him by such laws and regulations.
84.2 The issue of the Final Account Certificate pursuant to clause GCC 70 shall be made
only upon submittal by the Contractor of a certificate of income tax clearance from
the Government of Nepal.
85. Duties, Taxes
85.1 Any element of royalty, duty or tax in the price of any goods including fuel oil, and
and Royalties lubricating oil, cement, timber, iron and iron goods locally procured by the
Contractor for the works shall be included in the Contract rates and prices and no
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 reimbursement or payment in that respect shall be made to the Contractor.
85.2 The Contractor shall familiarize himself with GON the rules and regulations with regard
to customs, duties, taxes, clearing of goods and equipment, immigration and the
like, and it will be necessary for him to follow the required procedures regardless of the
assistance as may be provided by the Employer wherever possible.
85.3 The Contractor shall pay and shall not be entitled to the reimbursement of cost of
extracting construction materials such as sand, stone/boulder, gravel, etc. from the
river beds or quarries. Such prices will be levied by the local District Development
Committee (DDC) as may be in force at the time. The Contractor, sub-contractor(s)
employed directly by him and for whom he is responsible, will not be exempted from
payment of royalties, taxes or other kinds of surcharges on these construction materials
so extracted and paid for to the DDC.
86. Member of
86.1 No member or officer of GoN or the Employer or the Project Manager or any of their
Government, etc, not respective employees shall be in any way personally bound or liable for the act
Personally Liable or obligations of the Employer under the Contract or answerable for any default or
omission in the observance or performance of any of act, matter or thing which are
herein contained.
87. Approval of Use
87.1 No explosives of any kind shall be used by the Contractor without the prior consent of
of Explosives the Employer in writing and the Contractor shall provide, store and handle these
and all other items of every kind whatsoever required for blasting operations, all at
his own expense in a manner approved in writing by the Employer.

88 Compliance with 88.1 The Contractor shall comply with all relevant ordinances, instructions and regulations
Regulations for which the Government, or other person or persons having due authority, may issue
Explosives from time to time regarding the handling, transportation, storage and use of explosives.
89. Permission for
89.1 The Contractor shall at all times maintain full liaison with and inform well in
Blasting advance, and obtain such permission as is required from all Government authorities,
public bodies and private parties whatsoever concerned or affected, or likely to be
concerned or affected by blasting operation.
90.Records of
90.1 Before the beginning of the Defects Liability Period, the Contractor shall account to the
Explosives satisfaction of the Project Manager for all explosives brought on to the Site during
the execution of the Contract and the Contractor shall remove all unused explosives
from the Site on completion of works when ordered by the Project Manager.

91. Traffic Diversion

91.1 The Contractor shall include the necessary safety procedures regarding and pedestrian
traffic diversion that is needed in execution of the works. The Contractor shall include
in his costing of works, any temporary works or diversion that are needed during the
construction period. All traffic diversion should be designed for the safety of both the
motoring public and the men at work. It shall ensure the uninterrupted flow of traffic
and minimum inconvenience to the public during the period concerned. As such,
adequate warning signs, flagmen and other relevant safety precautionary measures shall
be provided to warn motorists and pedestrians well ahead of the intended diversion as
directed by the Project Manager. All traffic devices used shall be designed in accordance
with the instruction of Project Manager.
70
71
 Section VIII: Special Conditions of Contract
The following Special Conditions of Contract shall supplement the GCC. Whenever there is a conflict, the
provisions herein shall prevail over those in the GCC .

72
 Special Conditions of Contract

A. General

GCC 1.1 (q) The Employer is Budhanilkantha Municipality Office, Kathmandu

GCC 1.1 (v) The Intended Completion Date for the whole of the Works shall be 4 Months.

The Project Manager is Chief Engineer, Urban Development and Infrastructure

GCC 1.1(bb) & Development Division, Budhanilkantha Municipality Office, Kathmandu.
10.1
The Project Manager and Engineer are synonyms.

GCC 1.1 (ee) The Site is located at Budhanilkantha Municipality,Ward no 02, Kathmandu

GCC 1.1 (hh) The Start Date shall be 7 days from the date of site possession.

GCC 1.1 (ll) The Works consist of Construction of Ganesh Mavi Building at ward no- 2

GCC 2.2 Sectional Completions are: NA

GCC 2.3(i) The following documents also form part of the Contract: NA

GCC 3.1 The language of the contract is ENGLISH/NEPALI

The law that applies to the Contract is the law of NEPAL

GCC 11.1 The Project Manager may delegate any of his duties and responsibilities.

GCC 14.1 Schedule of other contractors: NA

The minimum insurance amounts and deductibles shall be:
GCC 19.1
1. The minimum cover for loss of or damage to the Works, Plant and Materials is:
115% of the Contract Amount.
2. The maximum deductible for insurance of the Works and of Plant and Materials is:
Nrs. 50,000
3. The minimum for insurance of other property is: Nrs. 100,000 with unlimited
number of occurrences
4. The maximum deductible for insurance of other property is: Nrs. 50,000
5. The minimum cover for personal injury or death insurance
i. for the Contractor’s employees is that specified in the Labor act of Nepal and
ii. for other people is: Nrs. 10,00,000 with an unlimited number of occurrences

GCC 20.1 Site Investigation Reports are: NA

GCC 23.1 The following shall be designed by the Contractor: NA

GCC 26.1 The Site Possession Date(s) shall be: within 15 days from the date of signing the Contract

73
 agreement.

GCC 30.1 The place of arbitration shall be: Nepal Council of Arbitration (NEPCA).

C. Time Control

GCC 34.1 The Contractor shall submit for approval a Program for the Works within 7 days
from the date of the Letter of Acceptance.

GCC 34.3 The period between Program updates is 7 days.

The amount to be withheld for late submission of an updated Program is NRs.10,000.00

D. Quality Control
GCC 42.1 The Defects Liability Period is: 365 days from the date of completion of the works.

E. Cost Control

GCC 49.1 As per prevailing law of Nepal

GCC 53.1 The Contract is not subjected to price adjustment, and the following information regarding
coefficients does not apply.

GCC 53.6 NOT APPLICABLE

GCC 53.7 NOT APPLICABLE

GCC 54.1 The proportion of payments retained is: 5 (five) percent

GCC 55.1 The liquidated damages for the whole of the Works are 0.05 Percent of the final Contract Price
per day. The maximum amount of liquidated damages for the whole of the Works is 10 Percent
of the final Contract Price.

GCC 56.1 NOT APPLICABLE

GCC 57.1 NOT APPLICABLE

GCC 57.3 NOT APPLICABLE

GCC 58.1 The Performance Security amount is: as prevailing law of Nepal

G. Finishing the Contract

GCC 71.1 The date by which operating and maintenance manuals are required is; NA
GCC 71.2 NOT APPLICABLE
GCC 72.3 (i)
The maximum number of days is: 200

74
GCC 80 The Project Manager has to obtain the specific approval of the Employer for taking any of the
following actions :
a. Approving subcontracting of any part of the works under General Conditions of Contract
Clause 13;
b. Certifying additional costs determined under General Conditions of Contract Clause 50;
c. Determining start date under General Conditions of Contract Clause 1;
d. Determining the extension of the intended Completion Date under General Conditions of
Contract Clause 35;
e. Issuing a Variation under General Conditions of Contract Clause 1 and 46, except in an
emergency situation, as reasonably determined by the Project Manager; emergency
situation may be defined as the situation when protective measures must be taken for
the safety of life or of the works or of adjoining property.
f. Adjustment of rates under General Conditions of Contract Clause 45;

75
Section IX: Contract Forms

This Section contains forms which, once completed, will form part of the Contract. The forms for
Performance Security and Advance Payment Security, when required, shall only be completed by the
successful Bidder after contract award.

76
 Letter of Intent
[on letterhead paper of the Employer]

Date: ... …………………

To: .................................................Name and address of the Contractor..........................

Subject: …………………… Issuance of letter of intent to award the contract............

This is to notify you that, it is our intention to award the contract ... ............................................... [insert date]
............................for execution of the ... ............................................................................................. [insert
name of the contract and identification number, as given in the Contract Data/SCC] to you as your bid price
............................................ [insert amount in figures and words in Nepalese Rupees] as corrected and
modified in accordance with the Instructions to Bidders is hereby selected as substantially responsive lowest
evaluated bid.

Authorized Signature: ………………………………

Name: ... …………………………………………….

Title: ……………………………………………….

CC:
[Insert name and address of all other Bidders, who submitted the bid]

[Notes on Letter of Intent

The issuance of Letter of Intent is the information of the selection of the bid of the successful bidder by the Employer
and for providing information to other unsuccessful bidders who participated in the bid as regards to the outcome of the
procurement process. This standard form of Letter of Intent to Award should be filled in and sent to the successful Bidder
only after evaluation and selection of substantially responsible lowest evaluated bid.]

77
 Letter of Acceptance
[on letterhead paper of the Employer]

Date: ……………………..

To: ……………………………………Name and address of the Contractor……………...

Subject: …………………….Notification of Award

This is to notify that your Bid dated ................................date …………………………..for execution of

the……………………..name of the contract and identification number, as given in the Contract Data/SCC
……………………... for the Contract price of Nepalese Rupees [insert amount in figures and words in
Nepalese Rupees], as corrected in accordance with the Instructions to Bidders is hereby accepted in
accordance with the Instruction to Bidders.

You are hereby instructed to contact this office to sign the formal contract agreement within 15 days with
Performance Security of NRs. ………. in accordance with the Conditions of Contract, using for that
purpose the Performance security Form included in Section X (Contract Forms) of this Bidding Document.

Authorized Signature: …………………………………...

Name and Title of Signatory: ……………………………

78
 Contract Agreement
THIS AGREEMENT made the ...............................day of…..between……………………. name of the
Employer ………………(hereinafter “the Employer”), of the one part, and
……………………………name of the Contractor …………………(hereinafter “the Contractor”), of the
other part:
WHEREAS the Employer desires that the Works known as ……………………….... name of the Contract
..............................should be executed by the Contractor, and has accepted a Bid by the Contractor for the
execution and completion of these Works and the remedying of any defects in the sum of NRs
…..........…..[insert amount of contract price in words and figures including taxes](hereinafter “the Contract
Price”).
The Employer and the Contractor agree as follows:
1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to
them in the Contract documents referred to.

2. The following documents shall be deemed to form and be read and construed as part of this Agreement.
This Agreement shall prevail over all other Contract documents.
(a) the Letter of Acceptance;
(b) the Letters of Bid;
(c) the Addenda Nos ................................... Insert addenda numbers if any ……………
(d) the Special Conditions of Contract;
(e) the List of Eligible Countries that was specified in Section V of the bidding document,
(f) the General Conditions of Contract;
(g) the Specification;
(h) the Drawings;
(i) Bill of Quantities (or Schedules of Prices for lump sum contracts), and
(j) Table of Price Adjustment Data
(k)List of Approved Subcontractors
(l) ............................................................[Specify if there are any other document]

3. In consideration of the payments to be made by the Employer to the Contractor as indicated in this
Agreement, the Contractor hereby covenants with the Employer to execute the Works and to remedy defects
therein in conformity in all respects with the provisions of the Contract.
4. The Employer hereby covenants to pay the Contractor in consideration of the execution and completion
of the Works and the remedying of defects therein, the Contract Price or such other sum as may become
payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance with the
laws of Nepal on the day, month and year indicated above.

Signed by ………………………….
for and on behalf the Contractor in the presence of

79
 Witness, Name Signature, Address, Date List of Approved
Subcontractors

In accordance with GCC Sub-Clause 13.1,The following Subcontractors are approved for carrying
out the work as specified below.

Name of Value/Percentage
Description of Works
Subcontractors of subcontract

80
 Performance Security
(On letterhead paper of the Bank)

............................ Bank’s Name, and Address of Issuing Branch or Office ................................... Beneficiary:
.............................................. Name and Address of Employer ………………….......
Date: ..................................................

Performance Guarantee No.:………………………………………………….

We have been informed that ... ... [insert name of the Contractor] (hereinafter called "the Contractor") has
been notified by you to sign the Contract No. ……………….. [insert reference number of the Contract] for the
execution of ……….. [insert name of contract and brief description of Works] (hereinafter called "the
Contract").

Furthermore, we understand that, according to the conditions of the Contract, a performance guarantee is
required.

At the request of the Contractor, we... .............................................. . [insert name of the Bank] hereby irrevocably
undertake to pay you any sum or sums not exceeding in total an amount of ...............[insert name of the currency
and amount in figures*] (... ............................................................. .. insert amount in words) such sum being
payable in Nepalese Rupees, upon receipt by us of your first demand in writing accompanied by a written
statement stating that the Contractor is in breach of its obligation(s) under the Contract, without your needing
to prove or to show grounds for your demand or the sum specified therein.

This guarantee shall expire, no later than the………………………..Day of ………………… **, and any
demand for payment under it must be received by us at this office on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758 .

…………………………………………
Seal of Bank and Signature(s)
Note:
All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document.
 The Guarantor shall insert an amount representing the percentage of the Contract Price specified in the Contract in
Nepalese Rupees.
** Insert the date thirty days after the date specified for the Defect Liability Period. The Employer should note that in the event of an
extension of the time for completion of the Contract, the Employer would need to request an extension of this guarantee from the
Guarantor. Such request must be in writing and must be made prior to the expiration date established in the guarantee.

81
 Advance Payment Security(NOT APPLICABLE)
(On letterhead paper of the Bank )
…………………………….. Bank’s Name, and Address of Issuing Branch or Office....................
Beneficiary: ………………………Name and address of employer
Date : …………………………………
Advance Payment Guarantee No……………………………..

We have been informed that ………………has entered into Contract No. ..... Name and Address of
Employer………………name of the Contractor……………(hereinafter called "the Contractor")..reference
number of the Contract……………dated …………… with you, for the execution of ...contract and brief
description of Works ……………. (hereinafter called "the Contract").

Furthermore, we understand that, according to the Conditions of the Contract, an advance payment in the
sum……………. name of the currency and amount in figures*…(.... amount in words .....) is to be made
against an advance payment guarantee.

At the request of the Contractor, we... ................................... . name of the Bank …………………. hereby
irrevocably undertake to pay you any sum or sums not exceeding in total an amount of………………….name
of the currency and amount in figures*... .............................. .(…… amount in words ... .) upon receipt by us
of your first demand in writing accompanied by a written statement stating that the Contractor is in breach of
its obligation under the Contract because the Contractor used the advance payment for purposes other than the
costs of mobilization in respect of the Works.
The maximum amount of this guarantee shall be progressively reduced by the amount of the advance payment
repaid by the Contractor as indicated in copies of interim statements or payment certificates which shall be
presented to us. This guarantee shall expire, at the latest, upon our receipt of a copy of the interim payment
certificate indicating that eighty (80) percent of the Contract Price has been certified for payment, or on the
....... day of ......**, whichever is earlier. Consequently, any demand for payment under this guarantee must
be received by us at this office on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758 .

……………………………………………………
Seal of Bank and Signature(s)
Note:
All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document.
*The Guarantor shall insert an amount representing the amount of the advance payment in Nepalese Rupees of the advance payment
as specified in the Contract.
** Insert the date Thirty days after the expected completion date. The Employer should note that in the event of an extension of
the time for completion of the Contract, the Employer would need to request an extension of this guarantee from the Guarantor.
Such request must be in writing and must be made prior to the expiration date established in the guarantee.

82
 Retention Money Security
(On letterhead paper of the Bank)

............................ Bank’s Name, and Address of Issuing Branch or Office...................................

Beneficiary: ___________________ [Insert name and Address of Employer]

Date: ________________[Insert date of issue]

RETENTION MONEY GUARANTEE No.: [Insert guarantee reference number]

We have been informed that ________________ [insert name of Contractor, which in the case of a joint venture
shall be the name of the joint venture] (hereinafter called "the Applicant") has entered into Contract No.
_____________ [insert reference number of the contract] dated ____________ with the Beneficiary, for the
execution of _____________________ [insert name of contract and brief description of Works] (hereinafter called
"the Contract").

Furthermore, we understand that, according to the conditions of the Contract, the Beneficiary retains moneys up to
the limit set forth in the Contract (“the Retention Money”), and that when at least eighty (80) percent of the whole
works have been completed, progress of the works is satisfactory in accordance with the Contract as per approved
work schedule and it can be assured that the works can be completed at the intended completion date, payment of
[insert the amount of the Retention Money] is to be made against a Retention Money guarantee.

At the request of the Applicant, we, as Guarantor, hereby irrevocably undertake to pay the Beneficiary any sum or
sums not exceeding in total an amount of ___________ [insert amount in figures] ( ) [amount in words]1 upon
receipt by us of the Beneficiary’s complying demand supported by the Beneficiary’s statement, whether in the demand
itself or in a separate signed document accompanying or identifying the demand, stating that the Applicant is in breach
of its obligation(s) under the Contract, without your needing to prove or show grounds for your demand or the sum
specified therein.

This guarantee shall expire no later than the …. day of ……, 2… 2, and any demand for payment under it must be
received by us at the office indicated above on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.

____________________
[Seal of Bank and signature(s)]

Note: All italicized text (including footnotes) is for use in preparing this form and shall be deleted from the final product.

1
The Guarantor shall insert the amount of the Retention Money.

2 Insert the same expiry date which is 30 days more than the end of Defect Liability Period. The Employer should note
that in the event of an extension of this date for completion of the Contract, the Employer would need to request an extension of
this guarantee from the Guarantor. Such request must be in writing and must be made prior to the expiration date established
in the guarantee.

83
 SECTION-VI
Bill of Quantities
Notes for Unit Rate Contracts :
Objectives
The objectives of the Bill of Quantities are
(a) to provide sufficient information on the quantities of Works to be performed to enable Bids to be
prepared efficiently and accurately; and
(b) when a Contract has been entered into, to provide a priced Bill of Quantities for use in the periodic
valuation of Works executed.

In order to attain these objectives, Works should be itemized in the Bill of Quantities in sufficient detail to
distinguish between the different classes of Works, or between Works of the same nature carried out in
different locations or in other circumstances which may give rise to different considerations of cost.
Consistent with these requirements, the layout and content of the Bill of Quantities should be as simple and
brief as possible.
Content
The Bill of Quantities should be divided generally into the following sections:
(a) Preamble;
(b) Work Items (grouped into parts);
(c) Day works Schedule;
d) Provisional Sums; and
(d) Summary.

Preamble
The Preamble should indicate the inclusiveness of the unit prices, and should state the methods of
measurement which have been adopted in the preparation of the Bill of Quantities and which are to be used
for the measurement of any part of the works.

Work Items
The items in the Bill of Quantities should be grouped into sections to distinguish between those parts of the
Works which by nature, location, access, timing, or any other special characteristics may give rise to
different methods of construction, or phasing of the Works, or considerations of cost. General items common
to all parts of the works may be grouped as a separate section in the Bill of Quantities.
Day work Schedule
A Day work Schedule should be included only if the probability of unforeseen work, outside the items
included in the Bill of Quantities, is high. To facilitate checking by the Employer of the realism of rates
quoted by the Bidders, the Day work Schedule should normally comprise the following:
(a) A list of the various classes of labor, materials, and Constructional Plant for which basic day work
rates or prices are to be inserted by the Bidder, together with a statement of the conditions under which the
Contractor will be paid for work executed on a day work basis.
(b) Nominal quantities for each item of Day work, to be priced by each Bidder at Day work rates as bid.
The rate to be entered by the Bidder against each basic Day work item should include the Contractor’s profit,
overheads, supervision, and other charges.
Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by including a provisional
sum in the Summary Bill of Quantities. Similarly, a contingency allowance for possible price increases should
be provided as a provisional sum in the Summary Bill of Quantities. The inclusion of such provisional sums
often facilitates budgetary approval by avoiding the need to request periodic supplementary approvals as
the future need arises. Where such provisional sums or contingency allowances are used, the Contract Data
should state the manner in which they will be used, and under whose authority (usually the Project Manager’
s).

Summary
The Summary should contain a tabulation of the separate parts of the Bill of Quantities carried forward, with
provisional sums for Day work, for physical (quantity) contingencies, and for price contingencies (upward
price adjustment) where applicable.

These Notes for Preparing Specifications are intended only as information for the Employer or the person
drafting the Bidding documents. They should not be included in the final documents.
 Bill of Quantities
1 Provisional Sum
Procument Item Details

SL.
Item Description Unit Quantity Unit Rate(NPR) Amount(NPR)
No

1 Provide ,operate and Maintain Quality Control PS 1.0 25000.0 25,000.00

Laboratory including equipment,accesories and
consumables for both field testing facilities and off site
test with manpower as directed by engineer and
technical specification.
2 Miscellaneous and Emergency works such as shifting of PS 1.0 100000.0 100,000.00
electrical poles, cutting trees,relocation of services
transferring existing structures etc as directed by
engineer and technical specification.
2 Construction work
Procument Item Details

SL. Bidder's Rate Bidder's Rate (in Total Amount

Item Description Unit Quantity
No (NPR) words) (NPR)
Provide policies for insurance of loss
of or damage to works, Plant and
materials; loss of or damage to
1 Equipment; Third party Insurance and Job 1.0
Loss of or damage to property ; and
Personal injury or Death as prescribed
in GCC 13
Excavation for Structures Foundation,
Earth work in excavation of
foundation of structures, including
construction of shoring and bracing,
2 cum 72.31
removal of stumps and other
deleterious matter and backfilling with
approved Material as per Drawing and
Technical Specifications.
Providing and laying flat brick soling
3 all complete as per drawing and sqm 17.01
technical specifications.
Providing and laying of Plain Cement
Concrete M 10 ( or 1:3:6 for nominal
4 mix) in Foundation complete as per cum 0.23
Drawing and Technical Specifications.

Providing and laying of Plain Cement

Concrete M 15 ( or 1:2:4 for nominal
5 mix) in Foundation complete as per cum 1.93
Drawing and Technical Specifications.

Providing and laying of

Plain/Reinforced Cement Concrete
PCC Grade M 25(1:1:2) for nominal
6 cum 10.94
mix) for P.C.C height upto 5m in Sub-
Structure complete as per Drawing
and Technical Specifications.
Providing and laying of
Plain/Reinforced Cement Concrete
PCC Grade M20(1:1.5:3) for nominal
7 cum 40.73
mix) for P.C.C height upto 5m in Sub-
Structure complete as per Drawing
and Technical Specifications.
 Procument Item Details

SL. Bidder's Rate Bidder's Rate (in Total Amount

Item Description Unit Quantity
No (NPR) words) (NPR)
Providing , Preparing and Installing
form work including necessary
supports and removing after
8 sqm 457.02
completion for foundation and
footings. (Class F1 Finish) Using
timber (soft wood )
Providing and laying Steel
reinforcement bar of Fe 415/500 grade
including straightening, cleaning,
cutting, bending, placing in position
9 kg 6644.32
and binding with annealed binding
wire all complete as per design,
drawing, specification and instruction
of site engineer.
Providing and fabricating chain link
mesh of size 3"*3" 10 gauge steel as
10 sqm 23.4
per technical specification all
complete
Providing and laying Brick Masonry
Work in Cement mortar in Foundation
/ structure in ratio (Cement Mortar 1:
11 cum 41.71
4 complete excluding Pointing and
Plastering, as per Drawing and
Technical Specifications.
Providing and applying 12.5 mm
12 cement sand (1:4) plaster as per sqm 229.28
technical specification all complete
Providing and Installing Chaukosh
13 made of Agrakh wood as per technical cum 0.47
specification all complete
Supplying and fitting readymade teak
wood doors,ordinary (seasoned and
14 sqm 3.78
poisoned treated ,one side teak) with
all necessary hardware all complete)
Providing and laying 38*75 mm
chiran sal wood frame with 4mm glass
15 sqm 20.25
khapa as per technical specification all
complete
Supplying and fixing UPVC Double
Door (frame 60 X 60mm sash 60 X
16 140mm white colour with 5mm Glass) sqm 3.78
all complete as per technical
specifications.
Supplying and fixing UPVC sliding
window with net (frame 50 X 80mm
17 sash 58 X 36mm white colour with sqm 0.41
5mm Glass) all complete as per
technical specifications.
Providing and fixing of tubular truss
works for building using black
18 tubular square pipe of different size kg 197.03
with primer with all accessories as per
design and Technical Specifications .
Providing and Laying of Porcelin
19 glazed tile on Floor/wall in 1:4 C/S sqm 37.65
ratio all complete.
Providing and laying of Stone
Masonry Work in Cement Mortar 1:4
20 in Foundation/structure all complete cum 44.65
as per Drawing and Technical
Specifications.
Laying, fitting , Joining of HDPE pipe
with all accessories as per drawing
21 kg 107.1
and technical specification all
complete.
 Procument Item Details

SL. Bidder's Rate Bidder's Rate (in Total Amount

Item Description Unit Quantity
No (NPR) words) (NPR)
Dismantling of cement concrete
pavement by mechanical means using
pneumatic tools, breaking to pieces
not exceeding 0.02 cum in volume and
22 stock piling at designated locations cum 0.09
and disposal of dismantled Material up
to a lead of 1000 metres, stacking
serviceable and unserviceable Material
separately
Preparing 38 mm Screeding works in
23 C:S:A(1:2:4) including punning sqm 120.81
works.
Applying of two coat Plastic Emulsion
24 paint as per requirement and technical sqm 103.05
specifications.
Applying of two coat Weather coat
25 paint as per requirement and technical sqm 103.05
specifications.
Supplying and installing rcc ring-36"
26 nos 15.0
dia 20cm height. 5cm thick
Supplying and installing rcc ring-36"
27 dia 60mm thick rcc ring cover with nos 3.0
metal frame.
Supplying and fixing of the following
28 Pipe And fittings all complete. CPVC Mtr 30.0
Pipe (28.1 kg/cm2) 3/4'' dia
Supplying and fixing of the following
29 Pipe And fittings all complete. CPVC Mtr 30.0
Pipe (28.1 kg/cm2) 1'' dia
Supplying and fixing of the following
Pipe And fittings all complete. .UPVC
30 Mtr 15.0
Pipe 75mm dia-UPVC PIPE NS
206/046- 6KG/CM2
Supplying and fixing of the following
Pipe And fittings all complete. .UPVC
31 Mtr 15.0
Pipe 110mm dia-UPVC PIPE NS
206/046- 6KG/CM2
Supplying and fixing of the following
fittings and accessories all complete as
32 Nos 5.0
per instruction of the engineer.UPVC
MultiFloor -Trap
Supplying and fixing of the following
fittings and accessories all complete as
33 Nos 5.0
per instruction of the engineer.CP
Soap Dish
Supplying and fixing of the following
fittings and accessories all complete as
34 Nos. 2.0
per instruction of the engineer.-15mm
dia CP Angle Valve
Supplying and fixing of the following
fittings and accessories all complete as
35 Nos. 1.0
per instruction of the engineer.-15mm
dia Bib cock
Supplying and fixing of the following
fittings and accessories all complete as
36 per instruction of the engineer.- Nos 3.0
Porcelain clay white glazed wash
basin (50x40) cm size
Supplying and fixing of the following
fittings and accessories all complete as
37 per instruction of the engineer.-White Nos 5.0
Glazed Porcelain Pan-(580 mm size
orisa pan)
 Procument Item Details

SL. Bidder's Rate Bidder's Rate (in Total Amount

Item Description Unit Quantity
No (NPR) words) (NPR)
Supplying and fixing of the following
fittings and accessories all complete as
38 Nos 1.0
per instruction of the engineer.-PVC
Watertank 2000L
Supplying and installing Multistrained
Fexible wire for house wiring (90
39 Coil 1.0
meter per coil) NS marked Wqv.-1.0
mm PVC insulated Copper wire
Supplying and installing Multistrained
Fexible wire for house wiring (90
40 Coil 1.0
meter per coil) NS marked Wqv.-1.5
mm PVC insulated Copper wire
Supplying and installing Multistrained
Fexible wire for house wiring (90
41 Coil 1.0
meter per coil) NS marked Wqv.-2.5
mm PVC insulated Copper wire
Supplying and fitting of the following
electrical appliances as per
42 Set 20.0
instructions all complete-GI Metal box
1/2 module 3x3
Supplying and fitting of the following
electrical appliances as per
43 Set 15.0
instructions all complete-GI Metal box
module 4 3x5
Supplying and fitting of the following
electrical appliances as per
44 Set 20.0
instructions all complete-16A Multi
Power Socket local brand
Supplying and fitting of the following
electrical appliances as per
45 Set 12.0
instructions all complete-6 Gang +
Socket Switch local brand
Supplying and fitting of the following
electrical appliances as per
46 Set 6.0
instructions all complete-1 Gang
Switch
Supplying and fitting of the following
electrical appliances as per
47 Set 1.0
instructions all complete-8 way SPN
Distribution Box
Supplying and fitting of the following
electrical appliances as per
48 Nos 10.0
instructions all complete- 40A Single
Pole 10 KA MCB
Supplying and fitting of the following
electrical appliances as per
49 Nos 4.0
instructions all complete-40A Double
Pole 10KA MCB
Supplying and fitting of the following
electrical appliances as per
50 Set 4.0
instructions all complete-36/40W,
LED TUBE light
Supplying and fitting of the following
electrical appliances as per
51 Set 6.0
instructions all complete-12W
Decorative Dome Light
Total of Procument Items
Total Item Price

VAT

Grand Total